Based on our assessment that the overall prospects remain in line with price stability over the medium term, we decided to leave interest rates unchanged. Interest rates are at a low level and monetary and financial conditions remain generous in the euro area, thus supporting an economic upswing.
However, I do not wish to conceal the fact that there are some upside risks to price stability. In particular, oil price developments could have a continuing impact on the euro-area inflation rate. If that were the case, second-round effects in wage and price-setting could emerge, leading to a strengthening of inflationary pressure in the euro area.