According to Eurosystem forecasts, domestic price pressures will slowly increase, for as the euro-area economy continues its recovery, factory capacity utilisation will mount and wage growth will accelerate. This will also show up in the core inflation rate, which, according to the December projection, will reach 1.7% in 2019.
In this state of affairs, an accommodative monetary policy certainly continues to be appropriate, though opinions differ over the right degree of monetary accommodation.