This will take place during the course of next year and the Central Bank will again conduct its own independent assessment of the banks’ loan losses, again with the assistance of Blackrock, rather than rely on the banks’ own calculations. We will, as before, call it as we see it.
Therefore, a significant degree of monetary stimulus continues to be necessary to ensure that financial conditions remain very favourable and support the euro area expansion, the ongoing build-up of domestic price pressures and, thus, headline inflation developments over the medium term. Let me now explain our assessment in greater detail, starting with the economic analysis.