And a medium-term-oriented approach, in turn, helps one to respond that little bit earlier to threats to the value of money, and not to attach undue importance to short-term factors. Moreover, given an independent central bank, political developments do not exercise a direct impact on confidence in the currency.
This could pose risks to price stability over the medium term and warrants vigilance. The very low level of interest rates is also fuelling private sector demand for credit. Growth in loans to non-financial corporations has picked up further in recent months.