Hence my view that government bond purchases are an instrument of last resort – one which should mainly be used to fend off deflation. But I’ve said in the past that the fears of deflation are overblown. They’ve now become even less of an issue, and the Eurosystem’s price projections 2/9  BIS central bankers' speeches  reflect as much, of course.
We view the neutral interest rate as the policy rate consistent with the economy growing at its potential in the  6  BIS central bankers’ speeches  medium term and having inflation expectations matching the price stability objective. The Bank’s analysis suggests that the neutral 90-day rate currently sits in the 4 to 5 percent range.