The Government’s decision to extend the guarantees to the end of the year to facilitate the exit from the health emergency will allow firms to have continued access to medium-term loans at very low interest rates and allow banks to satisfy the demand for credit with a lower impact on their own capital requirements.
In the light of the various risks to the outlook, the Governing Council has increased interest rates on three occasions, totalling 75 basis points, since last December. Looking ahead, the Governing Council has signalled that it will exercise strong vigilance to ensure that risks to price stability do not materialise and that inflation expectations are kept firmly anchored.