• At no time during crisis have inflation expectations significantly deviated from our definition of price stability
  • Governing council’s programme of covered bond purchases is now almost complete
  • Some banks have started facing increasing funding problems
  • Current market uncertainty could have major impact on financial stability, real economy, if left unchecked
  • A condition for market tension to abate is that budgetary discipline is implemented rigorously
  • Credibility of fiscal commitments is of paramount importance