lending capacity of usd 1 trillion. major central banks, including the ecb, have taken coordinated action to enhance the provision of us dollar liquidity. the ecb has also agreed to swap line arrangements with some eu central banks to provide euro liquidity and is assessing further requests for euro - providing swap lines in line with its mandate. going forward the international community will need to cooperate closely, learn from each other with respect to the effectiveness of the various policy responses, share information and coordinate policy actions, also when lifting containment measures, so as to help bring about a swift return to sustainable global growth and preserve an open global economy. 1 targeted longer - term refinancing operations, offering banks long - term funding at attractive conditions, to preserve favourable borrowing conditions for banks and stimulate bank lending to the real economy. the interest rate applied is linked to the participating banks ’ lending patterns. 2 further information on the app, the ltros and tlros can be found here, on the pepp here and on the collateral easing measures here. 3 / 3 bis central bankers'speeches

, reflecting mainly carry - over effects from the projected stronger growth towards the end of 2010. in the governing council ’ s assessment, the risks to this improved economic outlook are slightly tilted to the downside, with uncertainty still prevailing. on the one hand, global trade may continue to perform more strongly than expected, thereby supporting euro area exports. on the other hand, concerns remain relating to the emergence of renewed tensions in financial markets and to some uncertainty about growth prospects in other advanced economies and at the global level. in addition, downside risks relate to renewed increases in oil and other commodity prices, and protectionist pressures, as well as the possibility of a disorderly correction of global imbalances. with regard to price developments, euro area annual hicp inflation was 1. 6 % in august, according to eurostat ’ s flash estimate, compared with 1. 7 % in july. the small decline in inflation is likely to reflect base effects in the energy component. later in the year annual hicp inflation rates are expected to increase slightly while displaying some volatility. looking further ahead, in 2011 inflation rates should remain moderate overall, benefiting from low domestic price pressures. inflation expectations over the medium to longer term continue to be firmly anchored in line with the governing council ’ s aim of keeping inflation rates below, but close to, 2 % over the medium term. this assessment is also reflected in the september 2010 ecb staff macroeconomic projections for the euro area, which foresee annual hicp inflation in a range between 1. 5 % and 1. 7 % for 2010 and between 1. 2 % and 2. 2 % for 2011. compared with the eurosystem staff macroeconomic projections of june 2010, the ranges have been revised slightly upwards, largely on account of higher commodity prices. risks to the outlook for price developments are slightly tilted to the upside. they relate, in particular, to the evolution of energy and non - oil commodity prices. furthermore, increases in indirect taxation and administered prices may be greater than currently expected, owing to the need for fiscal consolidation in the coming years. at the same time, risks to domestic price and cost developments are contained. turning to the monetary analysis, the annual growth rate of m3 stood at 0. 2 % in july 2010, unchanged from june. the annual growth rate of loans to the private sector, which has been gradually increasing, rose further to 0. 9 %, but still remains relatively weak. the subdued developments in money and loan