speech date : 10 june 2020 speaker : governor stefan ingves venue : swedish economics association sveriges riksbank se - 103 37 stockholm ( brunkebergstorg 11 ) tel + 46 8 787 00 00 fax + 46 8 21 05 31 registratorn @ riksbank. se www. riksbank. se the monetary policy toolbox * the spread of the coronavirus came as an unpleasant surprise to us all. it is now clear that the economic consequences of the pandemic threaten to be both serious and protracted. most analysts have very weak forecasts for economic developments in the coming quarters, and in some scenarios also for a longer period to come. we are in the midst of an unforeseen economic development that needs to be met with various macroeconomic tools, and the riksbank has an important role to play here, together with the government, the riksdag ( swedish parliament ) and other authorities. during the initial phase of the crisis, we executive board members have already taken a large number of decisions to support the swedish economy, and thus contribute to meeting the targets for economic policy, and i will comment on what we have done in more detail later on. we can note that many of the measures have major consequences for the riksbank's balance sheet – something that will be a recurring theme in today ’ s speech. today i intend to focus primarily on how the “ monetary policy toolbox ” needs to look to be able to manage future challenges. i will take a longer perspective and discuss which tools the riksbank may need to use, especially if the low interest rate scenario that has characterised the past 10 years becomes even more prolonged. the fact that monetary policy measures affect a central bank ’ s balance sheet has become increasingly common in large parts of the world. this development has been driven by the very low interest rates and the need to make monetary policy even more expansionary. essentially, it is nothing new – if we go back in time, there are many examples of central banks that have used variation in their asset portfolios as a means of conducting monetary policy. the monetary policy toolbox also needs to take into account changes in the financial system ; for instance, we in 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - * this speech grew out of many long discussions held over the spring of 2020. the opinions expressed

jean - claude trichet : ecb press conference – introductory statement introductory statement by mr jean - claude trichet, president of the european central bank, and mr vitor constancio, vice - president of the european central bank, frankfurt am main, 8 september 2011. * * * ladies and gentlemen, the vice - president and i are very pleased to welcome you to our press conference. we will report on the outcome of today ’ s meeting of the governing council, which was also attended by commissioner rehn. based on its regular economic and monetary analyses, the governing council decided to keep the key ecb interest rates unchanged. inflation has remained elevated and is likely to stay above 2 % over the months ahead before declining next year. at the same time, the underlying pace of monetary expansion continues to be moderate, while monetary liquidity remains ample. as expected, the pace of economic growth in the euro area decelerated in the second quarter, following strong growth in the first quarter. looking ahead, we expect the euro area economy to grow moderately, subject to particularly high uncertainty and intensified downside risks. at the same time, short - term interest rates are low. while our monetary policy stance remains accommodative, some financing conditions have tightened. it remains essential for monetary policy to focus on its mandate of maintaining price stability over the medium term, thereby ensuring that recent price developments do not give rise to broad - based inflationary pressures. a very thorough analysis of all incoming data and developments over the period ahead is warranted. inflation expectations in the euro area must remain firmly anchored in line with our aim of maintaining inflation rates below, but close to, 2 % over the medium term. such anchoring is a prerequisite for monetary policy to make its contribution towards supporting economic growth and job creation in the euro area. we will continue to monitor very closely all developments. the provision of liquidity and the allotment modes for refinancing operations will continue to ensure that euro area banks are not constrained on the liquidity side. all the non - standard measures taken during the period of acute financial market tensions are, by construction, temporary in nature. let me now explain our assessment in greater detail, starting with the economic analysis. euro area real gdp growth decelerated to 0. 2 % quarter on quarter in the second quarter of 2011, after 0. 8 % in the first quarter. as expected, temporary factors which had boosted growth in the early part of