Monetary policy exceptionally accommodative for a prolonged period

Abstract

The outlook for the global economy weakened during summer 2015. The sudden slowdown in economic growth in China was reflected in a considerable weakening of global stock markets and rising long-term interest rates. The global economy has also been affected by uncertainty about the timing of the US Federal Reserve’s monetary policy tightening. Capital inflows shifting into capital outflows from emerging economies has impaired their prospects. In the euro area, growth has been held back by the weakness of the Greek economy.