1.1 Monetary and fiscal policy in the euro area The Governing Council of the ECB recently reiterated the need for monetary policy to remain accommodative until it sees inflation move in a sustainable way closer to its inflation aim.
At its last meeting on January 23, it kept monetary policy implementation unchanged, and noted that incoming data during the previous month were in line with baseline scenarios of ongoing but moderate growth in the euro area. It further concluded that risks remain tilted to the downside, but that some of the downside risks in the global economy have become somewhat less pronounced.