A lot has happened since the previous hearing, including further significant policy measures by the RBA. This morning, I would like to explain why we took these additional measures and how they will help the recovery. To provide some context, I will begin with a summary of recent economic developments and the economic outlook.
As regards domestic developments, the fundamentals of the euro area economy remain sound and the euro area does not suffer from major imbalances. In this context, investment growth in the euro area should continue to support economic activity, as rates of capacity utilisation remain elevated and profitability in the non-financial corporate sector has been sustained.