Continued accommodative monetary policy supports the return of the inflation rate towards the price stability objective

Abstract

Recent developments in the euro area and global economy have been favourable. In the euro area, economic growth is strong and broad-based, which is also reflected in decreasing unemployment. The output gap has closed in most euro area countries on the back of economic growth. Inflation remains still subdued, but confidence in inflation converging towards the ECB's objective has strengthened. Despite current favourable developments, the lessons learned from the financial and euro crises must not be forgotten.