However, progress remains slow in relation to consumer spending – the main element of domestic demand. While consumer confidence has picked up in recent months, consumer spending growth remains subdued, though there are one or two signs of improvement. Looking ahead, the view of the Governing Council is that the conditions remain in place for ongoing economic expansion in the euro area.
The Bank will examine how to respond effectively as the central bank while monitoring how demand for rebuilding funds emerges and how such demand is met by private financial institutions and support from the government. Lastly, let me mention that the Bank has been working hard to exchange damaged banknotes and coins.