The Council recognizes that inflationary pressures in the Eurozone have eased recently “as some of the previously identified downside risks to the euro area growth outlook have materialised.” They point out that elevated uncertainty undermines confidence.
The report confirms ECB's capacity to “ensure medium term price stability by acting in a firm and
timely manner” and reminds that all the standard non-standard monetary policy measures were implemented in order to support “the transmission of monetary policy.”
The Governing Council sees a weakening in GDP growth in the short term, but they also believe that it should gradually recover with time “although with momentum dampened by a number of factors” the main ones being tensions in EU sovereign debt markets as well as elevated unemployment. Low private consumption in advanced economies also contributes to slow recovery.