In addition, the rise in medium- to long-term inflation expectations remains moderate, as will be explained later, and the rate of wage increases may remain moderate for the time being. Therefore, I take a cautious view regarding the outlook for prices.
On the aggregate, the return on equity of euro area banks has not yet recovered since the financial and sovereign crises, and remains low by historical and international standards. There are, however, important heterogeneities: small and medium-sized banks are still suffering, while larger intermediaries are recovering.