Do central bankers anticipate that their balance sheets will shrink to more normal levels as they move away from the zero lower  BIS central bankers’ speeches  3  bound? Is it desirable to do so? Or should monetary policy now be seen as having another tool, even in normal times?
Private consumption continues to be supported by these favourable labour market developments as well as by the solid growth in households’ disposable incomes, higher asset values and an accommodative monetary policy that has contributed to a lower debt burden for borrowers. Looking ahead, private consumption growth is expected to remain favourable as anticipated improvements in the labour market should support consumer confidence.