On Thursday 9 March, the ECB announced that it was to maintain its highly accommodative monetary policy until inflation starts to build up, for instance through generalised wage increases.
“A very substantial degree of monetary accommodation is still needed for underlying inflation pressures to build up support for headline inflation in the medium term”, said the President of the ECB, Mariel Draghi, following a meeting of the Governing Council.
Since early 2017, the annual inflation...