In the context of relatively contained underlying inflationary pressures, the ECB has left its key interest rates unchanged since June 2003. The low level of nominal and real interest rates has provided significant and continued support to the economic recovery. At the same time, upside risks to price stability need to be monitored closely.
Cross-checking with the indications from the monetary analysis supports the case for continued vigilance with regard to those risks. Monetary policy and heterogeneity I would like to make some remarks on inflation and growth disparities in the euro area and how they may be relevant for the conduct of monetary policy. Inflation dispersion in the euro area declined throughout the 1990s.