I am confident that full implementation of the private and public sector asset purchase programmes, as announced, will lead to a sustained return of inflation rates towards levels consistent with our definition of price stability, underpinning the firm anchoring of medium to long-term inflation expectations.
As always, the Governing Council stands ready to use all the instruments available within its mandate to respond to any material change to the outlook for price stability. References Bhattarai, S., Eggertsson, G.B. and Gafarov, B., “Time Consistency and the Duration of Government Debt: A Signalling Theory of Quantitative Easing”, unpublished manuscript, 2014.