- Financial markets have stabilized: bond yields, CDS lower, stocks higher
- Strong capital flows into the euro zone
- But all this has not found its way through to the real economy
- No change in outlook was the reason for unchanged rates
Bye-bye talk of a rate cut.
- No reason to exit non-standard measures
- Not thinking of exit strategy now
- need to see greater economic strength; medium-term outlook unchanged, so no reason for exit
- French collateral issue has been corrected; didn’t effect monetary policy; takes such instances very seriously
