• Cut rates by 25 bp despite inflation holding above 2% because expects it to fall below 2% in 2012
  • Financial market tensions to dampen growth in second half of this year
  • Downside risks have intensified
  • Cuts to growth forecasts likely
  • Provision of liquidity will continue; all non-standard measures are temporary
  • Low short-term rates will help economy
  • Financial market tensions have intensified; potential to spill-over into real economy
  • Inflation to fall below 2% during the course of 2012
  • Prices, wages should moderate
  • Weaker than expected euro-area growth; weaker global growth
  • Welcomes increase in bank capital to 9% by mid-2012, hopes it does not lead to excessive deleveraging
  • Fiscal consolidation and structural reforms should be accelerated, especially for bailed-out nations
  • Must rapidly adopt measures agreed at Oct 26 summit