However, sustainable relaxation in the inter-bank money markets requires a sustainable return of confidence in the financial markets. In order to achieve this aim, it is necessary that the process of restoring banks’ balance sheets continues, supported by public stabilisation funds.
This decision brings the total reduction in the interest rate on the main refinancing operations of the Eurosystem since 8 October 2008 to 275 basis points. Overall, inflation rates have decreased significantly and are now expected to remain well below 2% over 2009 and 2010.