These two channels correspond to the two main elements of Banking Union: the Single Supervisory Mechanism (SSM) and the Single Resolution Mechanism (SRM).
Inflation is likely to stay above 2% for several months to come, before declining to below 2%. Available survey indicators confirm some tentative signs of a stabilisation in economic activity at a low level around the turn of the year, but the economic outlook remains subject to high uncertainty and downside risks. The underlying pace of monetary expansion remains subdued.