In view of the uncertainty relating to special factors pertaining to the changeover to the stage three environment and the introduction of the euro, the Governing Council does not view the recent acceleration in M3 as a signal of future inflationary pressures. However, monetary developments need to be monitored closely in the coming months.
With regard to the broadly based outlook for price developments and risks to price stability, new information on indicators of future price developments and economic activity in the euro area continue to provide mixed signals. Financial indicators such as the yield curve show that the spread between short-term and long-term interest rates has recently widened somewhat.