With regard to the broadly based outlook for price developments and risks to price stability, new information on indicators of future price developments and economic activity in the euro area continue to provide mixed signals. Financial indicators such as the yield curve show that the spread between short-term and long-term interest rates has recently widened somewhat.
This followed the decline in long-term interest rates in January to the lowest levels seen since the late 1940s. Nevertheless, conditions for investment at the start of monetary union are favourable. This relates in particular to the prevailing low interest rate level, which significantly reduces the costs of financing for investors.