Indeed, core inflation has been incredibly persistent in the euro area, stuck below 1%, while inflation forecasts until 2019 remain under the target with downside risks, as I said earlier. Hence, at least for the first half of the year, the ECB’s stance remains accommodative as more evidence that inflation is self-sustaining is needed.
Direct government involvement means that the government establishes policy financial institutions to lend to disadvantaged industrial sectors and regions, while policy guidance means that the government adopts preferential policies to guide the market to increase input to the disadvantaged. Policy support is an important feature of finance for the disadvantaged.