This is in line with the latest projections by ECB staff [who predict real GDP growth of between 0.4 and 1.2% for this year and between 0.5 and 2.5% for next year]. The Governing Council views the risks to this outlook as broadly balanced. As regards price developments, inflation and inflationary pressures have remained low over recent months. Inflation stood at 0.9% in February.
The outlook for inflation is in line with price stability and the risks to this outlook remain broadly balanced. More specifically, we expect inflation to stay at around 1% in the near term, and to remain subdued over the policy-relevant horizon, largely on account of the abundance of idle resources and the moderate recovery. This is in line with the projections by ECB staff.