Growth overshadowed by hard-to-quantify risks

Euro area monetary policy has been eased significantly in recent years. The most important of the measures applied are the expanded asset purchase programme (EAPP), targeted longer-term refinancing operations and the introduction of a negative interest rate on the deposit facility. The Governing Council of the ECB has emphasised its commitment to securing a sustained adjustment in the path of inflation consistent with its inflation target, i.e. a level below, but close to, 2%. The asset purchase programme has proceeded as planned and has led to reductions across a broad spectrum of euro area interest rates.