Nevertheless, the latest forecasts provided by the ECB last Thursday continue to point to a gradual rise in inflation over the coming years: 0.1% in 2016, 1.3% in 2017 and 1.6% in 2018. 2  BIS central bankers’ speeches  II. This brings me to my second point: how effective are our non-standard measures? 1) Since the summer of 2014, we have implemented a series of monetary policy measures, dubbed “non-standard”, to complement cuts to key interest rates, which now stand at 0.00% for main refinancing operations and-0.40% for the deposit facility. These measures include: 2) Targeted longer-term refinancing operations, conditional on the provision of bank lending to the real economy. The new series of TLTROs that we decided to launch on 10 March - TLTRO 2 - will allow banks to borrow at highly favourable rates, depending on the amount of new credit they provide; 3) Purchases of private and public sector securities, to further ease monetary and financial conditions in the euro area. The Eurosystem buys asset-backed securities, covered bonds and investment grade bonds issued by euro area sovereigns, agencies and institutions. On 10 March we decided to expand this programme further by including corporate bonds among eligible assets, and increasing the amount of monthly purchases to EUR 80 billion from EUR 60 billion previously; 4)  Indications on the future path of key interest rates – or “forward guidance” – in order to influence agents’ expectations.
In the last HCSF communiqué in December 2015, for example, we indicated, on the subject of the property market, that “the price adjustment in the residential market since 2012 appears appropriate, whereas commercial real estate prices remain high”. We are ready, when needed, to take action with macroprudential measures, to prevent and mitigate any systemic risks that might arise. Monetary policy is thus doing a great deal to counter weak inflation and support economic activity – it is our duty and we will continue to do so with steadfast resolve: we are consistent in our objective, ready to act with the right instruments, and alert to any possible risks. However, I would also like to stress that “monetary policy cannot be the only game in town”. Other economic policies also have a role to play. This is precisely what the members of the G20 reiterated in Shanghai on 27 February: “Monetary policies will continue to support economic activity and ensure price stability, consistent with central banks’ mandates, but monetary policy alone cannot lead to balanced growth”. Where there is sufficient margin to do so, fiscal policy must support demand – this is not currently the case in France, but it is in other countries in Europe. Moreover, structural reforms remain absolutely vital in France, to encourage creations of jobs and of businesses and thus bring the economy back to full potential. Our country can’t wait any longer; its unemployed, its young people – such as yourselves – can’t wait any longer.