as an easing in credit standards for loans to enterprises. however, we should not forget that credit standards overall remain rather tight from a historical perspective. as mentioned before, it was exactly against the backdrop of weak credit dynamics contributing to a subdued inflation outlook that we decided in early september to adopt a number of additional monetary policy measures, specifically designed to support the bis central bankers ’ speeches extension of credit to the real economy. as they work through the economy, these measures will help inflation rates return to below, but close to, 2 %. what else is needed : well, it is now in the hands of governments to act decisively on further structural reforms that will ensure higher sustainable growth and employment in the euro area. also, on the fiscal policy side, governments should not unravel the progress made in fiscal consolidation, but use any leeway to make fiscal policies more growth - friendly. as regards monetary policy, we remain fully determined to counter risks to the medium - term outlook for inflation. as i said in the european parliament last monday, we stand ready to use additional unconventional instruments within our mandate, and alter the size or composition of our unconventional interventions should it become necessary to further address risks of a too prolonged period of low inflation. bis central bankers ’ speeches

adopt a number of additional monetary policy initiatives which will complete and complement the measures already announced in june. on the basis of our current information, we expect inflation to remain at low levels, before gradually increasing during 2015 and 2016. furthermore, while inflation expectations have declined, particularly at shorter maturities, our measures will underpin the firm anchoring of inflation expectations in line with our aim of maintaining inflation rates below, but close to, 2 %. additionally, our comprehensive assessment and stress tests have been rigorous and thorough ; this means that banks ’ balance sheet problems are being dealt with and that the necessary transparency will be provided on the health of european banks. this is in contrast to the pronounced balance sheet problems of japan in the 1990s. finally, a number of euro area countries have implemented structural reforms to increase their competitiveness. clearly, these efforts now need to gain momentum to achieve higher sustainable growth and employment in the euro area. in this context, it is also essential that governments conduct fiscal adjustment that is growth - friendly. economists and politicians in lithuania sometimes voice concerns that the economic benefits of being part of the euro area are offset by the rising costs of having the euro, e. g. with the implementation of the single supervisory mechanism, contributions by member states to the european stability mechanism, etc. what would your response bis central bankers ’ speeches be to these concerns? why does lithuania need to be part of the euro area despite those costs? joining the euro area is not a free lunch : it entails significant obligations, but many benefits at the same time. the obligations are stated very clearly in the treaty and in eu regulations. in this respect, compared with those countries that joined in the first wave of entry, lithuania has the advantage of joining a stronger euro area. the euro area has painfully recognised the flaws in its original design and taken major steps to repair them. there are tougher rules for fiscal policies, stronger oversight of macroeconomic imbalances, a lender of last resort for sovereigns in the form of the european stability mechanism, and there will soon be a sounder and more integrated banking sector thanks to the creation of the single supervisory mechanism. the euro area has gone through its difficult initial learning phase, and new members will reap the benefits, which certainly outweigh the costs associated with the existence of these institutions. joining a stronger euro area will increase the long - term prosperity of its members and their resilience to adverse shocks. but there are also other concrete benefits