We believe that this will improve the credibility of our policy, and contribute to stabilizing the FX market in the medium and long term. However, given the possibility of unexpected side effects developing under highly volatile market conditions, we will need to strengthen our monitoring.
That opens up the way to a higher natural rate of interest, and generally more normal monetary and financial conditions. The title of the previous session was “How to reform Europe”. In the same way as the whole EU, we in the small euro area countries face the need to reform our economies. Monetary policy is common for the whole area.