. 4 % in 2020 and 1. 4 % in 2021. compared with the march 2019 ecb staff macroeconomic projections, the outlook for real gdp growth has been revised up by 0. 1 percentage points for 2019 and has been revised down by 0. 2 percentage points for 2020 and by 0. 1 percentage points for 2021. the risks surrounding the euro area growth outlook remain tilted to the downside, on account of the prolonged presence of uncertainties, related to geopolitical factors, the rising threat of protectionism and vulnerabilities in emerging markets. according to eurostat ’ s flash estimate, euro area annual hicp inflation was 1. 2 % in may 2019, after 1. 7 % in april, reflecting mainly lower energy and services price inflation. on the basis of current futures prices for oil, headline inflation is likely to decline over the coming months, before rising again towards the end of year. looking through the recent volatility due to temporary factors, measures of underlying inflation remain generally muted, but labour cost pressures continue to strengthen and broaden amid high levels of capacity utilisation and tightening labour markets. looking ahead, underlying inflation is expected to increase over the medium term, supported by our monetary policy measures, the ongoing economic expansion and stronger wage growth. this assessment is also broadly reflected in the june 2019 eurosystem staff macroeconomic projections for the euro area, which foresee annual hicp inflation at 1. 3 % in 2019, 1. 4 % in 2020 and 1. 6 % in 2021. compared with the march 2019 ecb staff macroeconomic projections, the outlook for hicp inflation has been revised up by 0. 1 percentage points for 2019 and revised down by 0. 1 percentage points for 2020. turning to the monetary analysis, broad money ( m3 ) growth stood at 4. 7 % in april 2019, after 4. 6 % in march. sustained rates of broad money growth reflect ongoing bank credit creation for the private sector and low opportunity costs of holding m3. the narrow monetary aggregate m1 continues to be the main contributor to broad money growth on the components side. the annual growth rate of loans to non - financial corporations increased to 3. 9 % in april 2019, from 3. 6 % in march. beyond short - term volatility, the annual growth rate of loans to non - financial corporations has moderated somewhat in recent months from its peak in september 2018, reflecting the typical lagged reaction to the slowdown in economic growth observed over

asset purchases step by step over the coming quarters, and will end net purchases under the pandemic emergency purchase programme at the end of march. in view of the current uncertainty, we need more than ever to maintain flexibility and optionality in the conduct of monetary policy. our monetary policy is always data - dependent, and this is all the more important in the situation that we are facing at the moment. we will remain attentive to the incoming data and carefully assess the implications for the medium - term inflation outlook. those implications are key parameters in our forward guidance. our forward guidance has several dimensions. there is a defined sequencing between the end of our net asset purchases and the lift - off date. a rate hike will not occur before our net asset purchases finish. moreover, there are three conditions that will have to be met before the governing council feels sufficiently confident that a tilt in our policy rate is appropriate. all the three conditions are meant as safeguards against a premature increase in interest rates. finally, any adjustment to our policy will be gradual. conclusion let me conclude. former commission president jacques delors described the process leading up to the maastricht treaty as one requiring “ great determination, rockhard solidarity and a little daring from time to time ”. 2 the leaders of europe have once again demonstrated these qualities with their policy response to the pandemic crisis. and as we emerge from the pandemic, we need to continue down this path. the ecb will play its part and show the determination needed to ensure price stability. you may rest assured that our commitment to deliver on this remains absolutely unwavering, as does our resolution to explain, to convince, but also to listen and better understand people ’ s concerns. our regular exchanges with you, their elected representatives, are crucial in that regard. with this in mind, i very much look forward to today ’ s discussion with you. 1 see introductory statement by christine lagarde, president of the ecb, at the econ committee of the european parliament, 2 december 2019. 2 see presentation by president jacques delors at the european parliament, 12 february 1992. 3 / 3 bis central bankers'speeches