At its monetary policy meeting on 2 June 2016, the Governing Council assessed that the comprehensive package of decisions taken in early March underpins the momentum of the euro area’s economic recovery and fosters the return of inflation to levels below, but close to, 2%.
The ECB’s measures continue to ease the cost of credit and contribute to a strengthening in credit creation. The economic recovery in the euro area is proceeding gradually. Additional monetary stimulus, beyond the impetus already taken into account, is expected from the monetary policy measures still to be implemented, namely the corporate sector purchase programme (CSPP) and the new series of targeted longer-term refinancing operations (TLTRO II), and will contribute to further rebalancing the risks to the outlook for growth and inflation.
In the current context, it is crucial to ensure that the very low inflation environment does not become entrenched in second-round effects on wage and price setting. The Governing Council will closely monitor the evolution of the outlook for price stability and, if warranted to achieve its objective, will act by using all the instruments available within its mandate.