Only in the coming years do we expect to see core inflation weaken as well, with core inflation projected to drop to 3.1% in 2024 and 2.8% in 2025. The path of monetary policy is influenced by events in the euro area. That is why I would also like to briefly outline the current state of play in the euro area.
3/7  BIS - Central bankers' speeches  According to their June forecast, Eurosystem staff are expecting to see growth of 0.9% in 2023. The euro area as a whole, then, is faring noticeably better than Germany. Eurosystem experts are expecting euro area growth to pick up in 2024 and 2025, with annual growth rates of 1.5% in 2024 and 1.6% in 2025.