The inclusion of Greek government bonds in the Pandemic Emergency Purchase Programme of the ECB and the easing of collateral standards applied to Eurosystem refinancing operations allow the supportive monetary stance in the euro area to be transmitted more effectively to the real economy.
At the same time, the price pressure remained strong due to consequences of the invasion, such as the destruction of enterprises and infrastructure and disruption of production and supply chains. Moreover, business costs continued to grow on the back of the energy sector destructions. Despite a stabilization, inflation expectations remained high.