ECB to continue highly accommodative monetary policy

Abstract

Economic growth in the euro area is becoming more broadly based and there has already been four years of unbroken growth in GDP. The monetary policy of the ECB has been highly accommodative, lowering funding costs for both households and non-financial corporations across the euro area. Bank lending rates are at a historical low, which has strengthened credit growth. With lower unemployment and higher household incomes, confidence in future economic developments in the euro area is high. The accommodative monetary policy has buffered euro area growth against negative impacts from the growing global uncertainty, supported balance sheet restructuring in the financial sector and contributed to a reduction in leverage ratios.