The environment I am alluding to is that of low interest rates, low growth, higher life expectancy, and higher dependency ratios. Not a cocktail that many of you dream of, I'm sure. Lower growth amid continued low interest rates To set the scene, I would like to begin by briefly taking stock of the economic outlook and implications for monetary policy.
Growth rates in Europe and further abroad are set to taper in the coming years. The economic momentum has slowed during 2019. While the likelihood of a recession in Europe may be limited, a slowdown seems unavoidable. Weaker trade growth, investment, and a contraction in manufacturing are starting to spill over to other parts of the economy.