A stable financial system is an absolute prerequisite for sustainable economic growth, but stability alone is not enough: as has been said before, we all want stability, but we should not want the stability of the graveyard. It also has to be profitable for banks to provide credit to the real economy.
Looking ahead, lower commodity prices and the prospect of weak demand confirm our assessment of mid-January that inflationary pressures in the euro area are diminishing. Owing mainly to base effects stemming from the past behaviour of energy prices, headline annual inflation rates are projected to decline further in the coming months, possibly reaching very low levels at mid-year.