In 1999, the three-month average of annual percentage growth rates of M3 was consistently above the reference value. Over recent months, both money growth and the growth of credit to the private sector signalled generous liquidity conditions in the euro area and were seen as posing upward risks to price stability.
Let me now turn to the second pillar of the monetary policy strategy, the broadly based assessment of the outlook for price developments and risks to price stability in the euro area. Various macro-economic indicators available for the euro area consistently point towards a strong cyclical upswing in the euro area in 2000.