• No signs of deflationary spiral in euro area • Bundesbank expects inflation to slowly approach 2.0% • Europe is halfway through euro crisis ( is that ‘cup half full’ or ‘half empty’ type halfway?) • Negative deposit rate could help revive lending • ECB June action depends on medium term inflation outlook • Central bankers look at rates first for action • Recommends calmness on euro discussion • Didn’t change position on government bond purchases (full story)