Overall, the Governing Council sees the balance of risks around the baseline projection to the downside. According to Eurostat’s flash estimate, euro area annual HICP inflation decreased to 0.1% in May, down from 0.3% in April, mainly on account of lower energy price inflation.
It has been possible for the Bank to control short- and long-term interest rates because it has conducted meticulous purchases of JGBs. The Bank has made use as necessary of a powerful tool called "fixed-rate purchase operations," through which it purchases an unlimited amount of JGBs at a certain yield level.