The Bank pursues low inflation within a monetary policy framework based on an inflation-control target and supported by a flexible exchange rate. The current target is to hold the trend of inflation inside a range of 1 to 3 per cent, with emphasis on the midpoint of 2 per cent. Inflation-control targets help to anchor policy and to anchor people's inflation expectations.
Moreover, the latest survey data support expectations of robust growth throughout the first half of 2017. The PMI composite output index – which is strongly correlated with growth in the euro area – registered its highest quarterly average in nearly six years during the first three months of 2017, while the forward-looking components of the survey data point to continued growth in future quarters.