8  BIS Review 61/2004  However, since monetary policy is oriented towards price stability in the euro area as a whole, it cannot directly affect inflation differentials within the euro area. Therefore, national economic policies such as fiscal, structural and wage setting policies need to be adjusted to counteract persistent and potentially damaging inflation differentials. BIS Review 61/2004  9
At our meeting earlier this month, the Committee judged that the case for an increase in the target range had continued to strengthen and that such an increase could well become appropriate relatively soon if incoming data provide some further evidence of continued progress toward the Committee’s objectives.