BCB's David says unanchoring of inflation expectations still exits, despite having improved considerably; this requires BCB to operate with a tighter interest rate level than it would if it did not exist

• Guidance remains valid.
• The word serenity in their communication is valid for interpreting market data.
• Serenity does not mean inaction.
• It is natural to imagine that if price of oil increases, it has inflationary characteristic.
• All of this will be taken into consideration when making decisions.

BCB's David highlighting that inflation expectations are still unanchored suggests that tighter monetary policy remains necessary. This implies a cautious approach as persistently elevated inflation risks could drive rates higher than previously anticipated. It’s critical to monitor how energy prices might influence future decisions, especially given their inflationary impact.