In other words, inflation would need to maintain its trajectory even with diminishing support from monetary policy. In this context it should be recalled that the latest ECB staff projections from March this year include a material contribution from monetary policy to the path of inflation. In sum, continued monetary policy support for demand remains key to inflation convergence.
The recovery of inflation still depends on the very favourable financing conditions that firms and households are facing, which in turn is largely due to the current very accommodative monetary policy stance. The forward guidance on the future course of our policy is an integral component of our stance, as re-asserted by the Governing Council at its last meeting in April.