The banks’ lending, needed to support the economic growth, is still quite slow. The year to date banks’ lending growth up to September 2009 is still below 5%. In addition, the lending rate also does not decline as expected.
With the pre-pandemic inflation outlook restored, and with upside inflation risks being prominent, this goal has been reached. A key question going forward is whether we will need a higher purchase volume under our regular Asset Purchase Program to facilitate the transition out of the PEPP and to further support inflation dynamics. To me, this is not clear-cut.