ECB President Lagarde echoes statement; will follow the economic data in a meeting by meeting approach; is not pre-committing to a particular rate path

• Indirect effects would require close monitoring.
• Trade frictions may disrupt supply chains.

Inflation:

• Inflation risks tilted to the upside. 
• Indicators of underlying inflation remain consistent with 2% target.
• Increase in energy prices will drive inflation above 2% in the near term.
• Is focussed on long-term inflation expectations.

Growth/Economy:

• Growth driven by services, investment should grow.
• Risks to growth outlook are tilted to the downside.
• Middle east war led to downward revisions to base case for growth.
• If war in Middle East is shorter than expected; economy might get stronger.
• Wage indicators point to continued moderation.
• Corporate profits have recovered, labour costs rose.
• Deterioration in market sentiment may dampen demand.

War:

• Any fiscal measures to the energy price shock should be temporary, targeted and tailored.
• Prolonged war could boost prices further and weigh on incomes.
• Russia/Ukraine remains major source of uncertainty.