During that time, the ECB addressed tensions in euro area money markets within its operational framework, mainly by “frontloading” credit extended via its main refinancing operations within the reserve maintenance period, while at the same time keeping the overall supply of central bank liquidity unchanged.
That being said, the positive but modest underlying momentum of the recovery remains in place. Annual inflation in the euro area is currently 1.8%, and we expect inflation to remain moderate in 2011. Very importantly, we note that inflation expectations over the medium to longer term continue to be firmly anchored in line with our definition of price stability.