be supported in the short term by a number of temporary factors but is likely to be affected over the medium term by the process of ongoing balance sheet correction in the financial and the non - financial sector of the economy, both inside and outside the euro area. in the view of the governing council, the risks to this outlook remain broadly balanced. on the upside, there may be stronger than anticipated effects stemming from the extensive macroeconomic stimulus being provided and from other policy measures taken. confidence may also improve more quickly, the labour market deterioration may be less marked than previously expected and foreign demand may prove to be stronger than projected. on the downside, concerns remain relating to a stronger or more protracted negative feedback loop between the real economy and the financial sector, renewed increases in oil and other commodity prices, the intensification of protectionist pressures and the possibility of a disorderly correction of global imbalances. with regard to price developments, annual hicp inflation stood at - 0. 3 % in september, according to eurostat ’ s flash estimate, compared with - 0. 2 % in august. the current negative inflation rates are in line with previous expectations and reflect largely base effects resulting from the movements in global commodity prices a year ago. also owing to base effects, annual inflation rates are projected to turn positive again in the coming months. thereafter, over the policy - relevant horizon, inflation is expected to remain in positive territory, with overall price and cost developments staying subdued reflecting ongoing sluggish demand in the euro area and elsewhere. in this context, it is important to re - emphasise that inflation expectations over the medium to longer term remain firmly anchored in line with the governing council ’ s aim of keeping inflation rates below, but close to, 2 % over the medium term. risks to this outlook remain broadly balanced. they relate, in particular, to the outlook for economic activity and to the evolution of commodity prices. furthermore, increases in indirect taxation and administered prices may be stronger than currently expected owing to the need for fiscal consolidation in the coming years. turning to the monetary analysis, the latest data confirm that developments in broad money and credit growth remain subdued. in august, the annual growth of m3 and loans to the private sector declined further to historically low rates of 2. 5 % and 0. 1 % respectively. this parallel deceleration in money and credit growth confirms our previous assessment of a moderate underlying pace of monetary expansion and low inflationary pressures over the medium term. the ongoing

given the disagreements we have seen within the governing council. everyone has their own style. in any case, in terms of decision - making, while the president is important, the ecb is itself a machine made up of the staff, the committees, the executive board, the governing council... generally, decisions are taken in a collegial way and then the president announces them. that work is very important, but when institutions are sound not everything depends on one person. 7 / 7 bis central bankers'speeches