For the sake of emphasis, the Bank’s monetary policy objective is to achieve a sustainable, low and predictable level of inflation within a range of 3-6 percent over the medium term. Maintaining inflation within this range supports broader national objectives of sustainable economic growth and development, through promoting savings mobilisation and productive investment, as well as sustaining international competitiveness of domestic producers.
Another positive development is that we have witnessed a reduction in lending rates to small and medium-sized enterprises, which has been especially noticeable in the most fragile countries (Greece, Ireland, Italy, Portugal and Spain) since September. Then there is the decline in the euro and the fact that the fiscal policies of the euro area are becoming more neutral overall.