expected to turn positive again in the coming months, and to remain at moderately positive rates over the policy - relevant horizon. at the same time, the latest information continues to signal an improvement in economic activity in the second half of this year. although this outlook remains subject to a high degree of uncertainty, we expect the euro area economy to recover at a gradual pace in 2010. the monetary analysis confirms the assessment of low inflationary pressure over the medium term, as money and credit growth has continued to slow down. against this background, the current rates remain appropriate, and we therefore decided to leave the key ecb interest rates unchanged. market expectations for inflation are in line with our assessment. in particular, medium to longer - term inflation expectations remain firmly anchored in line with our aim of keeping inflation rates below, but close to, 2 % over the medium term. let me make one remark on exchange rates. i have repeatedly been on record in saying that i appreciate the statements made by the us president, the us secretary of the treasury and the chairman of the federal reserve that a strong dollar is in the interest of the united states of america. i agree with this analysis entirely. i would add that i believe that the strength of the dollar within the set of floating currencies is in the interest not only of the united states, but of the entire international community. i noted with great interest the remarks made yesterday by chairman ben bernanke at the economic club of new york. he said : “ the federal reserve will continue to monitor these developments closely. we are attentive to the implications of changes in the value of the dollar and will continue to formulate policy to guard against risks to our dual mandate to foster both maximum employment and price stability. our commitment to our dual objectives, together with the underlying strengths of the us economy, will help ensure that the dollar is strong and a source of global financial stability ”. this is a very important statement by my colleague, with whom i have a very good relationship. we are fully aligned in this analysis. thank you for your attention.

as rating agencies and market participants adjust their methodologies for assessing and rating risk. third, there is a need for improvement in risk management practices – not least liquidity management by financial firms ; standards of credit origination ; and monitoring of the debt servicing performance of borrowers. experience suggests that prior to the current turbulence investors underestimated the tail risks to which they were exposed, including the interdependencies between credit, market and liquidity risks. improvements in stress testing can play a key role here. needless to say, such stress tests should consider the crosscountry nature of the euro area financial system. finally, greater financial stability calls for closer communication and cooperation among players in the financial system, not just within the official sector, but also between the official and private sectors. this is especially true in the euro area given its multiplicity of jurisdictions and layers of responsibility, which puts a premium on cooperation. meetings like this suggest that the lesson is well understood by all the parties involved. this can only augur well for the future.