Thus, the TPI will ensure that our monetary policy stance is transmitted smoothly and effectively across all euro area countries, a precondition for the ECB to be able to deliver on its price stability mandate. Purchases under the TPI would be conducted such that they cause no persistent impact on the overall Eurosystem balance sheet and hence on the monetary policy stance.7  5  This forward guidance made the first interest rate rise subject to: (i) expected inflation standing at 2% over an 18-month horizon; (ii) it holding at 2% in the medium term; and (iii) the course of underlying inflation being compatible with inflation stabilising at 2% in the medium term. The APP decisions were also linked to these conditions, with the guidance stating that interest rates will only rise some time after net purchases have ended. 6  At an ad hoc meeting held in June, we decided to activate the flexibility in reinvestment of redemptions coming due in the PEPP portfolio, as the first line of defence to counter the pandemic-related risks to the transmission mechanism being seen. 7  In any event, PEPP reinvestment flexibility will continue to be the first line of defence to counter pandemic-related risks to the transmission mechanism.
That, however, is precisely what those are doing who are pressing for an early - as early  BIS Review 2/2001  5  as possible - decision: adopting the euro as the country's currency as soon as possible or a commitment to run our own currency system for ever. These two radical alternatives, however, are fraught with considerable uncertainties. It therefore seems much more rational to adopt a wait-and-see attitude during which experience is gained, and to delay the decision until such time as its implications may be assessed with greater accuracy than is possible today. If you don't yet know where Berne is and whether you will like it there or not, don't take a non-stop intercity train. Rather board a train that will stop once in a while, giving you a chance to make up your mind. Perhaps you will want to leave the train in Olten and go on to Basel instead, or you may prefer to get off in Lenzburg and return to Zurich. With this little side leap into option theory - or should I say common sense? - I shall close my remarks. I thank you for your patience.