In 2017, the economic recovery in the euro area developed into a solid and broad-based expansion. Robust growth ensured that the recovery in the labour market continued apace. As in previous years, the ECB’s monetary policy played a central role in this recovery and convergence story. The robust performance of the real economy, however, was not matched by developments in inflation. The differing outlooks for growth and inflation shaped the ECB’s monetary policy decisions during the year, leading to a recalibration of its asset purchase programme.[…]