However, for annual inflation rates to fall below 2% in the course of 2003 and for them to remain in line with our definition of price stability thereafter, it is crucial that oil prices do not significantly increase again and that the  BIS Review 64/2002  1  upward movement in labour cost indicators in the euro area, which has been taking place over recent years, does not continue.
These indicators have shown a notable inertia despite the subdued economic expansion. At the last meeting of the Governing Council of the ECB on 7 November, in view of the high uncertainty on future economic growth and its implications for medium-term inflationary developments, we discussed extensively the arguments for and against a cut in the key ECB interest rates.