Underlying price pressures in the euro area are expected to remain subdued over the medium term. We might experience a prolonged period of low inflation to be followed by a gradual upward movement towards inflation rates below, but close to, 2% later on.
This reflects the modest pace of the recovery and the fact that medium to long-term inflation expectations continue to be anchored in line with price stability. BIS central bankers’ speeches  1  Monetary and, in particular, credit dynamics remain subdued. The annual growth rate of loans to the private sector has stabilised at negative levels.