The economic outlook for the euro area has deteriorated rapidly. The impact of Brexit on Europe as a whole is hard to predict. Another factor overshadowing the global economy is the trade dispute between the USA and China.

A review of the ECB’s monetary policy strategy is due in light of the latest economic research and the changed operating environment.

Price stability has been pursued with different monetary policy strategies. A successful strategy increases the effectiveness of monetary policy.

The euro area’s monetary policy stance is conducive to economic growth and employment in Finland.

The fastest stage of growth in the euro area looks to have passed, but momentum remains strong. Uncertainty is being fuelled by protectionism and Italy’s domestic economic policy.

In times of uncertainty, prudence is justified in the normalisation of monetary policy.

Open and transparent communication is a win-win situation for monetary policy. It helps the private sector make better economic decisions and allows the central bank to achieve its price stability objective more efficiently.

Finland’s public finances have gathered strength; the general government deficit has shrunk and the ratio of public debt to GDP has begun to contract. Yet determined efforts are still required to address the challenges to fiscal sustainability in the long term.