Poor dynamics of prices could affect plans for the expected increase in interest rates. At the last meeting in October, the Governor's Council agreed to keep guidelines for further efforts, which prescribes keeping rates at current levels at least until 2019. However, – Draghi explained – monetary policy remains closely linked to data ("reaction function"), so therefore, in the event of a fall in liquidity or worsening of the inflation forecast, "the adjustment of the expected rate of growth of the rate" may occur. "The nature of this advancement," said the ECB's president, "depends on economic development and therefore acts as an automatic stabilizer." If financial or monetary conditions become overly restrictive or if inflation deteriorates, our reaction would be well defined, which should reflect the adjustment the expected time to increase interest rates ".
"Increasing self-produced shocks"
The lords, as always without direct mentioning of any country, but with the inevitable reference to Italy, noted that "high-debt countries should not increase it further, and all countries must respect the Union's rules." Moreover, according to President Becej, "the lack of fiscal consolidation in high-debt countries increases their sensitivity to shocks, which themselves are produced by asking questions about monetary union rules or imported pathways. The spread was largely limited to the first case and the infection was limited ".
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