A positive recent development is that the scope for countercyclical policies in many emerging economies has increased on the back of the development of local currency financial markets, the accumulation of substantial foreign reserves and a reduction in their net foreign-currency debt exposures.
In particular, the Governing Council emphasises that the future Single Supervisory Mechanism and a Single Resolution Mechanism are crucial elements for moving towards re-integrating the banking system and therefore require swift implementation. To sum up, taking into account today’s decisions, the economic analysis indicates that price developments should remain in line with price stability over the medium term.