The  BIS Review 87/2009  1  significant policy stimuli in the major economic areas should support growth around the world, including in the euro area. Inflation fell into slightly negative territory in June. This outcome was anticipated and mainly reflects the earlier sharp decline in global oil prices. It is therefore a welcome development, and one that supports households’ real incomes.
Looking ahead, we expect prices to remain dampened over the medium term. We are particularly pleased that all indicators of inflation expectations over the medium to longer term remain firmly anchored in line with the Governing Council’s aim of keeping inflation rates below, but close to, 2%.