Medium to longer-term inflation expectations according to both survey and market based measures remain well anchored in line with the ECB’s aim of keeping inflation rates below, but close to, 2% over the medium term.
As to monetary and credit developments, following double digit growth rates in the build-up of the financial crisis, signalling risks for macroeconomic instabilities and price stability, annual growth in the broad monetary aggregate M3 and in loans to the private sector fell sharply between 2008 and mid-2010 (slide 5). Since then, money and credit growth started to recover.