To sum up, I believe that ﬁnancing terms should be able to evolve in line with the economic recovery in the euro area. It’s not a matter of using monetary policy to cement a particular interest rate level. Instead, a premature deterioration should be prevented so as to counteract the pandemic’s downward pressure on medium-term price developments.
3 Economic activity, price outlook and inflationary risks  According to the latest ECB staff projections, inﬂation in the euro will pick up signiﬁcantly this year. Following on from a rate of 0.3% last year, ECB staff expect inﬂation to reach 1.5% in 2021.