The primary objective of the Eurosystem’s monetary policy is to maintain price stability. Only when this goal is achieved is there room for monetary policy to support the general economic policies in the euro area.
Going forward, the output gap is expected to move into positive territory and gradually increase further from the second half of fiscal 2016, albeit with fluctuations due to the frontloaded increase in demand prior to the consumption tax hike, with an increase in capacity utilization rates as exports and production are likely to pick up.