The Eurosystem’s monetary policy  The inflation rate is currently sitting slightly below zero, and ECB economists have forecast an annual average of 0.1% for 2016, 1.3% for 2017 and 1.6% for 2018. This means that the inflation rate is only very gradually approaching the level defined by the ECB Governing Council as price stability – below, but close to, 2%.
Therefore, in March, the ECB Governing Council adopted an extensive package of measures. The move that gained the most public attention – at least in Germany – was the renewed cut in the ECB’s policy rates.