As you know, the ECB Governing Council last month decided to launch an expanded asset purchase programme to bring inflation back to levels closer to our aim of below but close to 2% over the medium term.
What I would like to talk to you about this morning is the context in which we took that decision and how we are calibrating our policy response. The context for our recent decisions A stylised way of thinking about why we introduced our recent measures is to use the concept of the “inflation gap”.