The sharp swings in the term structure that we observed as a consequence starting in late May threatened to lead to a withdrawal of the monetary accommodation that we had introduced in early May. As a response, the Governing Council decided to clarify its policy orientations going forward, conditional on the outlook for inflation and weak economic activity.
Our forward guidance concerning the future likely evolution of our key interest rates which the Governing Council started to provide in July 2013 was a strong signal by the Governing Council on its commitment to fulfil its mandate and anchor market interest rates around levels that were considered consistent with the underlying macroeconomic conditions in the euro area.