These are all hopeful signs that we might have reached a turning point and that things should now gradually show a turn for the better. But at the same time, given recent growth expectations, we should not be overly optimistic either. Inside and outside the European Central Bank, there is much discussion about the level of interest rates in Europe.
Supporters of interest rate reductions are pointing to the worsening BIS Review 100/1998  –2–  economic conditions in the world and to the lead given by the US central bank, the Federal Reserve System. Let me try to put things in perspective here.