In this environment, the Governing Council has kept interest rates unchanged at the exceptionally low levels prevailing since June 2003. Thus, euro area interest rates remain at levels equivalent to post-World War II lows. The current euro area monetary policy environment The current monetary policy environment is complex, clouded with a number of domestic and international uncertainties.
The euro area recovery has clearly lagged that of most of the other major economies, and the future strengthening of growth still remains a gradually emerging prospect rather than a current reality. While inflation and inflation expectations remain well grounded and we don't see any immediate threats, there are some upside risks to the maintenance of price stability in the medium-term.