According to the December 2019 Eurosystem staff macroeconomic projections, a mild expansion is projected for the euro area over the period 2020–20211, while annual HICP inflation in the euro area will remain at the present low levels in 2020 and will increase only marginally in 2021.
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.