and private consumption, public and private investment and export and import dynamics. from a central banking perspective, the uncertainties associated with structural change reinforce the value of a stability - oriented approach to the conduct of monetary policy. in particular, a clear anchor for monetary policy allows households, firms and governments to concentrate on the many challenges associated with digitalisation and the carbon transition, secure in the knowledge that monetary policy will be guided by a clear and predictable framework that, in the case of the ecb, is oriented towards stabilising inflation at two percent over the medium term. although the precise design and calibration of our policy instruments will surely be influenced by these structural forces in the coming years, the policy goal will remain the same : protecting price stability by focusing on the symmetric two percent inflation target. in turn, our recent comprehensive strategy review has given us very strong foundations for ensuring that the conduct of monetary policy will take into account the economic, monetary and financial implications of digitalisation and the carbon transition. 1 / 2 bis central bankers'speeches 2 / 2 bis central bankers'speeches

you think that this tool will really support the economy? because the programme comes at the right time. we are seeing the first signs of an improvement in financial conditions in the euro area, which suggests that qe will be able to bear fruit, particularly via the credit channel. the latest indicators of monetary growth show that we are definitely at a turning point and that outstanding credit should start to rise again. for its part, the most recent survey of banks conveyed more optimism as far as demand is concerned. there are also signs of an improvement in consumption as it benefits from conducive structural reforms. another positive development is that we have witnessed a reduction in lending rates to small and medium - sized enterprises, which has been especially noticeable in the most fragile countries ( greece, ireland, italy, portugal and spain ) since september. then there is the decline in the euro and the fact that the fiscal policies of the euro area are becoming more neutral overall. lastly, the fall in the oil price and, of course, our monetary policy decisions themselves will contribute to this positive demand shock. all of this is helpful. so, it could be argued that there was no urgent need to launch this programme? bis central bankers ’ speeches on the contrary, it was imperative to act to prevent inflation expectations from becoming unanchored. it was a distinct possibility, considering the fall in oil prices. by launching qe now, we aim to anchor inflation expectations. but the indicators announcements … of expected inflation have not reacted to the ecb ’ s it ’ s normal for it to take a little time. it ’ s not an exact science, but the context should be favourable, and although i remain cautious, i am confident. everybody should make the most of this opportunity to give growth a further boost, each in his or her field of responsibility. will qe be good for banks? in terms of the lending conditions offered, banks are now lagging slightly behind demand. there are those that claim our financial asset purchase programme will further reduce their margins, while some financial institutions already lament the strong competitive pressure and complain of regulatory burdens. yet, the announcement on qe drove banking sector share prices higher. at the same time, we should be especially mindful that this sector will inevitably benefit from the economic recovery. is there a risk that financial institutions may resist and not sell the bonds they hold at the ecb? banks can realise a capital gain on the sale of their government bonds and, in doing