Accordingly, we will make sure that the extraordinary liquidity measures taken are phased out in a timely and gradual fashion and that the liquidity provided is absorbed in order to counter effectively any threat to price stability over the medium to longer term. By so doing, we will continue to ensure a firm anchoring of medium-term inflation expectations.
Such anchoring is indispensable to supporting sustainable growth and employment and contributing to financial stability. The financial system and individual institutions within it must act now to ensure that a future removal of central bank support can be managed without painful “withdrawal symptoms”.