It is expected that inflation will gradually fall below 2% and remain in line with price stability. However, short-term inflation prospects significantly depend on future oil price developments. Moreover, the maintenance of price stability over the medium term is conditional on moderate wage developments, which would also contribute to improving the labour market situation in the euro area.
In view of this outlook, the Governing Council concluded at its meeting on 3 April of this year that the prevailing monetary policy stance is consistent with the preservation of price stability over the medium term and it maintains a monetary environment that is in itself favourable to economic growth.