Interaction with the accounting standards One question which will invariably arise on implementing dynamic provisions would be whether the concept is in accordance with the international accounting standards? Thus far, the answer is negative since the concept of dynamic provisions deviates from the principle of incurred losses as followed currently in accounting.
Supported by our monetary policy measures, the expected economic recovery and the corresponding gradual absorption of slack, inflation rates should increase further in 2018 and 2019. This pattern is also reflected in the December 2016 Eurosystem staff macroeconomic projections for the euro area, which foresee annual HICP inflation at 0.2% in 2016, 1.3% in 2017, 1.5% in 2018 and 1.7% in 2019.