On the basis of our regular economic and monetary analyses, we continue to see no significant evidence of a build-up of underlying domestic inflationary pressures in the euro area. Accordingly, we have left the key ECB interest rates unchanged. The exceptionally low level of interest rates across the entire maturity spectrum provides considerable support to economic activity in the euro area.
Some previously frothy markets are still adjusting to a significant shift in price expectations, while other markets appear to be operating in a manner consistent with market fundamentals. As markets stabilize in Toronto and Vancouver, the Canadian housing sector should return to growth overall later this year.