The likelihood of deflation, in the sense of a protracted decline in the general price level, now appears slight, also because longer-term inflation expectations remain close to 2 per cent. However, in view of their seriousness, the persistent risks to the unfolding economic scenario require that the economy continue to be supported decisively using all available instruments.
There is awareness of the need to prepare in advance strategies to reabsorb the large budget deficits and exceptional liquidity creation that characterize the current situation. It is not yet possible to point with certainty to a definitive cyclical inversion: the forecast is for a return to growth in 2010.