Editorial : Monetary policy normalisation to proceed carefully and with measured pace

Abstract

The euro area's growth rate is set to moderate to approximately 2%. A reduction in unemployment has created suitable conditions for accelerated wage growth and a return in the path of inflation to the policy objective of below, but close to, 2%. At its monetary policy meeting in June 2018, the Governing Council of the ECB took policy decisions spanning a period of over one year, at least through the summer of 2019. The Governing Council announced that monetary policy will continue to remain accommodative for an extended period, even if monetary policy has entered a path of gradual normalisation.