With regard to the broadly based assessment of the outlook for price developments and the risks to price stability in the euro area, monetary and financial developments can be seen to indicate a favourable assessment of the latest monetary policy decisions of the Eurosystem. They indicate that market participants expect a continuation of the environment of price stability.
Long-term rates fell to new historical lows at the beginning of 1999 and there was an overall downward shift in the yield curve. Therefore, financing conditions for investment are currently exceptionally favourable. At present the growth prospects for the euro area are, however, still marked by the uncertainties relating to the development of the world economy in 1999.