##demic. to sum up, a cross - check of the outcome of the economic analysis with the signals coming from the monetary analysis confirmed that an ample degree of monetary accommodation is necessary to support economic activity and the robust convergence of inflation to levels that are below, but close to, 2 per cent over the medium term. regarding fiscal policies, an ambitious and coordinated fiscal stance remains crucial, as premature withdrawal of fiscal support would risk delaying the recovery and amplifying the longer - term scarring effects. national fiscal policies should thus continue to provide critical and timely support to the firms and households most exposed to the ongoing pandemic and the associated containment measures. at the same time, fiscal measures taken in response to the pandemic emergency should, as much as possible, remain temporary and targeted in nature to address vulnerabilities effectively and to support a swift recovery of the euro area economy. the three safety nets endorsed by the european council for workers, businesses and governments provide important funding support. the governing council reiterates the key role of the next generation eu package and the urgency of it becoming operational without delay. it calls on member states to ensure a timely ratification of the own resources decision, to finalise their recovery and resilience plans promptly and to deploy the funds for productive public spending, accompanied by productivityenhancing structural policies. this would allow the next generation eu programme to contribute to a faster, stronger and more uniform recovery and would increase economic resilience and the growth potential of member states ’ economies, thereby supporting the effectiveness of monetary policy in the euro area. such structural policies are particularly 3 / 4 bis central bankers'speeches important in improving economic structures and institutions and in accelerating the green and digital transitions. we are now ready to take your questions. 4 / 4 bis central bankers'speeches

. underlying price pressures are expected to increase somewhat this year, owing to short - term supply constraints and the recovery in domestic demand, although they remain subdued overall, in part reflecting low wage pressures, in the 2 / 4 bis central bankers'speeches context of economic slack, and the appreciation of the euro exchange rate. once the impact of the pandemic fades, the unwinding of the high level of slack, supported by accommodative fiscal and monetary policies, will contribute to a gradual increase in inflation over the medium term. survey - based measures and market - based indicators of longer - term inflation expectations remain at subdued levels, although market - based indicators have continued their gradual increase. turning to the monetary analysis, the annual growth rate of broad money ( m3 ) stood at 12. 3 per cent in february 2021, after 12. 5 per cent in january. strong money growth continued to be supported by the ongoing asset purchases by the eurosystem, as the largest source of money creation. the narrow monetary aggregate m1 has remained the main contributor to broad money growth, consistent with a still heightened preference for liquidity in the money - holding sector and a low opportunity cost of holding the most liquid forms of money. overall, lending to the private sector remained broadly unchanged. the monthly lending flow to non - financial corporations showed a modest pick - up in february compared with the previous month. this was also reflected in a slightly higher annual growth rate of 7. 1 per cent, after 6. 9 per cent in january. monthly lending flows to households continued to be solid with the annual growth rate of loans to households remaining unchanged at 3. 0 per cent in february. the latest euro area bank lending survey for the first quarter of 2021 reports a moderate tightening of credit standards for loans to firms, following more significant tightening in the previous two quarters. heightened risk perceptions among banks were again the main contributor to the tightening, although their impact was less pronounced than in previous survey rounds. surveyed banks also reported a renewed fall in demand for loans to firms, mainly driven by a continued decline in demand for financing for fixed investment. with regard to lending to households, the survey indicated lower demand for loans for house purchase, while the credit standards for these loans eased slightly, supported by competition among lenders. overall, our policy measures, together with the measures adopted by national governments and other european institutions, remain essential to support bank lending conditions and access to financing, in particular for those most affected by the pan