In the latest projections, euro area inflation is estimated to be 5.4% this year. Inflation is likely to continue to fall, down to 2.2% on average in 2025. In other words, our 2% target will not be achieved within the forecast period. One reason why inflation will not abate sooner is the lagged impact of monetary policy measures.
We have at the same time determined that the entire financial system might be adversely influenced should the implementation of the comprehensive measures to solve the financial problems of Nippon Credit Bank be delayed, and should market confidence in the bank not be maintained or restored.