BIS central bankers’ speeches  supporting the upward inflationary trajectory for euro area inflation back towards our aim of below but close to 2%. III. Re-integration of financial transmission  Another possible condition for a situation of sustained disinflation is that monetary policy losses traction over the economy in the presence of disrupted transmission mechanisms.
In the euro area our monetary policy response has indeed focused on two tracks: engineering an appropriately expansionary stance, while simultaneously repairing the monetary policy transmission mechanism so that this stance reaches euro area firms and households.