As part of this component, we offer banks liquidity over longer horizons at the rate of our deposit facility – that is, at a negative rate – without any conditions attached.
So the policy will not change until all balance sheets have been sanitised? We are determined to use forward guidance (the message that rates will be kept low for an extended period of time) to overcome the shortcomings in the transmission of monetary policy resulting also from fragmentation. We will do this as long as necessary.