The ECB also launched two supplementary longer-term refinancing operations (LTRO, with a maturity of three months), respectively on 27 August and 12 September, for a total amount of EUR 115 billion. The purpose of all these operations should be made clear.
Moreover, future oil price developments and economic imbalances elsewhere in the world economy remain elements of risk. Turning to price developments, Eurostat’s early estimate indicates that annual HICP inflation fell from 2.4% in April to 2.0% in May. However, this decline is mainly due to a base effect relating to the spike in HICP inflation in May 2001.