3/9  BIS central bankers' speeches  I.3 Alternative paths to normalization and potential impact Overall, the policies aiming to contain deflationary pressures have been effective in stabilising the financial system and thereby preventing a deep economic downturn. Some ten years later, the world economy has entered a synchronised growth phase.
Hence, we will witness temporarily high inflation rates for a more protracted period than previously anticipated, though rates will eventually decline towards 2%. What does such an outlook mean for the Eurosystem’s monetary policy stance?