Set against this are some risks to the upside, stemming mainly from the fiscal expansion in the United States and, more in the medium term, from likely fiscal expansions in several countries in the euro area. We will continue to monitor these developments closely.
Financial stability policy encompasses, as the first line of defense at least, a range of microprudential and macroprudential tools, both structural and varying over the cycle, supported by enhanced monitoring and analysis of potential risks to systemic stability.