Therefore monetary growth needs to be analysed very closely by the Governing Council and we believe that monetary developments constitute an invaluable compass for monetary policy decisions aimed at price stability over the medium term. However, it is well known that the short-run relationship between money and prices is more complex.
While there is no universal definition for financial stability, there is global consensus on its importance. In the simplest terms, it is about having a financial system that is able to function well and effectively when economic conditions are good but also during adverse situations.