Economic activity, especially in the euro area, is also being buoyed by what remains a very accommodative monetary policy. And let me add that, with inflation still muted, I believe that an accommodative monetary policy stance is still appropriate for the euro area. Views can differ over the correct degree of monetary policy expansion and the proper instruments, however.
As you know, the Governing Council of the ECB has decided to halve its monthly bond purchases from January 2018 onwards, but to continue them until at least September 2018. Furthermore, the Governing Council has announced that interest rates will remain at their present levels “well past the horizon” of its net purchases.