However, public confidence in our determination to maintain price stability is not measured by the level of current inflation, which is mainly caused in the euro area by the unprecedented energy shock.
The recalibrated forward guidance on interest rates provides scope for taking data-driven action. The ECB (European Central Bank) Governing Council now foresees adjustments to the policy rate taking place “some time after the end of the net purchases”. Any adjustments it makes will be gradual.