Given the strength of M3 growth over the past few years, there remains substantially more liquidity in the euro area than is needed to finance non-inflationary growth. As a consequence, inflationary risks could rise. In addition, high excess liquidity and strong credit growth could become a source of strong asset price increases.
Overall, while the prospects for price developments remain in line with price stability over the medium term, upside risks to price stability have emerged. The Governing Council will remain vigilant with regard to all developments which could imply risks to price stability over the medium term.