ECB President Lagarde (post-meeting statement) says incoming information broadly consistent with previous view of inflation outlook, upside risks to inflation and downside risks to growth have intensified

POLICY STANCE:

Well positioned to navigate uncertainty
Reiterates data-dependent, meeting-by-meeting approach
Reiterates ECB not pre-committing to any rate path
Outlook is highly uncertain, depends on duration of Middle East conflict, and impact on inflation
Decisions will be based on inflation outlook and risks facing it, as well as underlying inflation and monpol transmission

GEOPOLITICS:

Longer the war continues, the stronger the impact on broader inflation and the economy
The conflict is weighing on activity

INFLATION:

Risks to inflation outlook are to the upside (note: she omits the term 'tilted')
Long-term inflation expectations well-anchored, short-term expectations have moved up
Most measures of longer-term inflation are around 2%
Higher energy costs expected to continue weighing on incomes
Indicators of underlying inflation have been little changed in recent months
Surveys indicate an increase in other costs components and selling price expectations
Inflation will be well-above target in the near-term given energy prices
ECB will monitor size and persistence of energy price surge, and how it impacts inflation

ECONOMY:

Risks to the growth outlook are to the downside (note: she omits the term 'tilted')
Economy was showing momentum prior to the turbulence
Households are still in a solid financial position
Favourable starting point provides some cushioning from the war fallout
Urges policymakers to strengthen the economy; reiterates fiscal response should be targeted, tailored, and temporary
Simplifying and harmonising rules will help firms grow faster
Growth could prove to be higher if the economy proves to be adaptable, or the conflict resolves sooner than expected

FINANCIAL STABILITY:

Financial conditions are tighter now than before the war
Credit standards to firms tightened in Q1, due to banks becoming more concerns about the economic risks faced by customers