The employment and income situation has somewhat improved recently. Corporate profits have increased largely as a result of firms' restructuring efforts. This has led to a recovery in business fixed investment. While economic activity is improving, mild deflation is expected to continue.
With this decision, financing conditions will remain accommodative for an extended time period and contribute positively to the euro area’s growth outlook. The past decisions to restart the easing phase in March this year and to resume the net asset purchases in September were taken in response to the continued shortfall of inflation with respect to our target.