In general, a maturing euro corporate bond market adds to the diversification of corporate financing and leads to greater benefits from having multiple avenues of corporate finance.
However, the very expansionary monetary policy stance should be seen against the backdrop of domestic price pressures remaining low. Overall euro area inflation hit 2.1% in July, but inflation is currently being driven up by higher energy prices, in particular. Domestic price pressures are still distinctly lower. However, they are likely to intensify as aggregate capacity utilisation increases.