In particular, the tensions in the commercial paper market also affected the term unsecured money market, not least because commercial paper rates are often used as a reference for the pricing of EURIBOR under the hybrid methodology. The Eurosystem reacted decisively to the tensions in financial markets that extended well beyond the money and commercial paper market. We launched additional liquidity-providing operations for banks against an expanded set of collateral via targeted longer-term refinancing operations (TLTROs) at highly favourable rates, longer-term refinancing operations (LTROs and PELTROs) as well as foreign currency liquidity arrangements (swap and repo lines). In addition, the Eurosystem sharply expanded its purchases of public and private sector assets, which also included purchases of commercial paper, under the Pandemic Emergency Purchase Programme (PEPP) and the Asset Purchase Programme (APP). [13] The Eurosystem’s policy interventions effectively eased the liquidity strains observed in the spring of 2020 and supported market functioning by ensuring ample liquidity support for banks and stopping selfreinforcing fire-sale dynamics in key financial market segments, such as investment and money market funds. [14] The interventions have had a sustained effect on money markets in the euro area. Both EURIBOR and commercial paper rates have continued to recede in recent months and are currently at historically low levels. [15] The yield curve in unsecured money markets has flattened substantially even compared to the pre-crisis period (right-hand side of Slide 5). These low money market rates support the Eurosystem’s highly accommodative monetary policy stance.

I get immense value from their insights, whether it’s the challenges they face in filling positions, their plans for capital investments, or how global developments are influencing their decisions. These discussions provide a huge amount of detail and texture to the economic picture. One of the great strengths of the Federal Reserve System is our extensive networks of contacts in our communities, and we share what we learn from these conversations when we meet at the FOMC. Being "data dependent" means taking this holistic view when thinking about the economy and monetary policy. Not all of these types of data draw headlines the way shifts in the stock market do, but together they provide a much richer and more complete depiction of what’s happening. And they also tell me whether the signals we’re getting from the markets are reflected in the economy as a whole. 2018 Tailwinds In thinking about where the economy is heading, it’s worth reflecting on where we were 12 months ago. At the start of last year the message I was getting—from business leaders, economic data, and the markets—was one of overwhelming positivity. This reflected three tailwinds: strong global 2/4  BIS central bankers' speeches  growth, fiscal stimulus, and quite accommodative financial conditions. Each of these was giving the economy an extra boost. Indeed, these tailwinds provided even more of a boost over most of 2018 than forecasters had anticipated. Fast forward 12 months and indicators in Europe and Asia point to less optimism about global growth.