The second factor is developments in the U.S.-China trade friction, which is particularly crucial among various economic policy uncertainties. Chart 4 shows the impact of the trade friction on GDP for the United States and China, estimated by the IMF in June 2019. The left-hand bar graph represents the deviations from baseline projections of the real GDP levels for the two countries.
Against this background, the Governing Council believes that the current monetary policy stance will contribute to achieving price stability. As we have stressed, the firm anchoring of medium to longer-term inflation expectations is of the highest priority to the Governing Council. We remain strongly committed to preventing second-round effects and the materialisation of upside risks to price stability over the medium term.