have sound domestic policies in place, the imf ’ s role at the centre of the gfsn strongly supports global financial stability. the ecb welcomes the start the g20 has made in addressing some of the proposals from its eminent persons group. we look forward to further proposals on the finance track being taken up in the second half of the year. finally, as regards the forthcoming financial sector assessment program review, the ecb would welcome an agreement for holding a regular euro area review along the same frequency as for other major currency areas in the future. 3 / 3 bis central bankers'speeches

. this largely reflects the volatility in the annual rate of change in energy prices. measures of underlying inflation remain generally muted, but labour cost pressures have strengthened and broadened 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 rising wage growth. the latest ecb staff projections foresee annual euro area headline inflation of 1. 2 % in 2019, 1. 5 % in 2020 and 1. 6 % in 2021. at its last monetary policy meeting on 10 april, the ecb governing council confirmed that it continues to expect the key ecb interest rates to remain at their present levels at least through the end of 2019, and in any case for as long as necessary to ensure the continued sustained convergence of inflation to levels that are below, but close to, 2 % over the medium term. the governing council also intends to continue reinvesting, in full, the principal payments from maturing securities purchased under the asset purchase programme for an extended period of time past the date when we start raising the key ecb interest rates, and in any case for as long as necessary to maintain favourable liquidity conditions and an ample degree of monetary accommodation. the governing council also reiterated its readiness to adjust all of its instruments, as appropriate, to ensure that inflation continues to move towards the governing council ’ s inflation aim in a sustained manner. 1 / 3 bis central bankers'speeches in march, the governing council had decided to launch a new series of quarterly targeted longerterm refinancing operations ( tltro - iii ), starting in september 2019 and ending in march 2021, each with a maturity of two years, with a view to helping to preserve favourable bank lending conditions and the smooth transmission of monetary policy. the governing council will communicate the precise terms of the tltro - iii at one of the forthcoming meetings. in particular, the pricing of the new tltro - iii operations will take into account a thorough assessment of the bank - based transmission channel of monetary policy, as well as further developments in the economic outlook. in the context of the governing council ’ s regular assessment, it will also consider whether the preservation of the favourable implications of negative interest rates for the economy requires the mitigation of their possible side effects, if any, on bank intermediation. overall, an ample degree of monetary accommodation remains necessary to safeguard favourable financing