The Governing Council of the ECB expects the key interest rates to remain at present or lower levels for an extended period of time. This expectation is based on the overall subdued outlook for inflation extending into the medium term, given the broad-based weakness in the real economy and subdued monetary dynamics.
In the period ahead, the Governing Council will monitor all incoming information on economic and monetary developments and assess any impact on the outlook for price stability. If the short term risks scenarios were to materialise, they might push the full recovery back by some quarters. A more worrisome possibility, however, is that of a persistent slowdown.