On balance, the evidence tends to suggest that the effects of oil price shocks have become milder over time. Indeed, with regard to the inflationary impact of rising oil prices, it is notable that euro area inflation has been broadly stable in recent years.
The net purchases will be made alongside reinvestments of the principal payments from maturing securities purchased under the APP. Our monetary policy measures have continued to preserve the very favourable financing conditions that are necessary to secure a sustained convergence of inflation rates towards levels below, but close to, 2% over the medium term.