In such circumstances, it is more likely that the adjustment process will not abate as key participants in the financial system continue their efforts to strengthen their liquidity and capital positions. In an environment where balance sheet conditions change unexpectedly, there is no room for complacency.
In the last three months, the ECB continued to apply three measures it had used so far since the start of the financial market turbulences, with a view to further steering very short term money market rates close to the minimum bid rate and also to alleviate tensions in the euro money market.