The monthly bulletin released today revealed that the current monetary measures adopted remains appropriate and suitable in the undergoing period to boost economic growth and help the financial sector to stabilize. The December tender will be the last for 12-month loans, and the six-month loans will also end on March 31.

The ECB will gradually scale back, at the appropriate time, the excess liquidity measures as the economy will recover gradually where GDP is expected to improve on the quarterly basis, but recovery will remain uneven since it relies on temporary factors.

With regard to inflation, price pressures remain subdued and inflation will resume to positive territories in the coming period and will stabilize over the medium term. Annual HICP inflation to reach 0.3% this year and to fluctuate between 0.9% and 1.7% next year, whereas it will be between 0.8% and 2.0% in 2011.

The bank projects annual real GDP growth to range between -4.1% and -3.9% this year and between 0.1% and 1.5% next year, while in 2011 it will move between 0.2% and 2.2%.