substantially, to an annual growth rate of 1. 1 %. the effect of the adverse factors weighing on growth is expected to unwind over time. growth is expected to come in at 1. 5 % in 2021, unchanged from previous projections. supportive financing conditions, further employment gains and rising wage growth, and the ongoing – albeit slower – expansion in global activity, will continue to underpin the euro area expansion. nevertheless, the weaker growth momentum will leave its mark on domestic price pressures, slowing the adjustment of inflation towards our aim. underlying inflation continues to be muted and our staff projections see a somewhat slower path for headline inflation, which is now foreseen to reach 1. 6 % at the end of 2021. significant monetary policy accommodation therefore remains essential. at our march meeting, we decided to adjust the date - based leg of our forward guidance. by confirming that rates would remain at their current levels at least through the end of 2019, we extended the period of very low interest rates further by minimising expectations of a rate hike before the end of this year. of course, the second, state - based leg of our forward guidance continues to provide additional accommodation. furthermore, we observed that while bank lending conditions remain very favourable, the weaker outlook could affect the terms and conditions under which banks extend credit to businesses and households. it was therefore essential to preserve bank lending conditions by making sure that the refinancing needs of banks stemming from maturing bank bonds and outstanding targeted longer - term refinancing operations ( tltros ) would not jeopardise the transmission of monetary policy. 2 / 4 bis central bankers'speeches we therefore launched tltro - iii, a new series of quarterly refinancing operations, starting in september 2019 and ending in march 2021, each with a maturity of two years. banks will be entitled to borrow up to 30 % of the stock of eligible loans at a rate indexed to the interest rate on the main refinancing operations over the life of each operation. like the current tltro programme, tltro - iii will feature built - in incentives for credit conditions to remain favourable for the euro area economy. overall, the measures taken in march signal our determination to provide the accommodation needed to underpin the economic expansion and ensure that inflation remains on a sustained path towards our inflation aim. key issues on the european financial agenda over the course of 2018, the financial stability environment became more challenging, which was reflected in systemic stress

proceeding at a balanced pace large global imbalances persist widespread public debt sustainability concerns have emerged links between weak balance sheets of both governments and the banking sector have led to renewed tensions in financial markets, particularly affecting the euro area. at the national level, it is clear that utmost priority must be placed in restoring public debt sustainability, increasing domestic savings and enhancing potential growth in the crisis - hit countries. these are necessary conditions to stabilise external debt and put it on a bis central bankers ’ speeches downward path. these objectives are at the core of the recently approved financial assistance programme to portugal. at the eu level, a new economic governance model is needed to deliver fiscal discipline, prevent sustained losses in competitiveness and promote financial stability. for this purpose, in october 2010, the european council endorsed the proposals put forward by a special task force on economic governance led by president van rompuy. building on the recommendations of the task force, the european parliament and the council adopted, in november 2011, the six legislative proposals presented by the european commission in september 2010. the new economic governance model comprises : a reformed stability and growth pact, aimed at enhancing the surveillance of fiscal policies and applying enforcement measures more consistently and at an earlier stage new provisions aimed at strengthening national fiscal frameworks a new surveillance mechanism of macroeconomic imbalances. it remains to be seen whether the new surveillance framework will prove sufficient to ensure a smooth functioning of the euro area. the current turmoil in financial markets that i have concisely addressed, together with the challenges posed by globalisation and the vulnerability of economies to cross - border financial risks, call for the need to fully and timely capture this evolving reality by means of relevant statistics, produced and disseminated on a regular basis. statistics are a public good. therefore, compiling and communicating top - quality statistics require efficient production and dissemination processes, in line with international standards and in compliance with commitments to national and international organisations. the design, implementation and monitoring of eu policies constantly require statistical support to ensure that the policies address the relevant issues and that the expected results will be achieved. just as eu policies evolve, good statistics have to develop in parallel. in this regard, it is necessary to strike a proper balance between reducing the respondents ’ reporting burden and requiring more data ( e. g., raw micro data ) for compiling high - quality statistics. enhanced collaboration among statistics compilers is also warranted, mainly as regards the interchange of quantitative information and knowledge for statistical purposes. effective and