ECB President Lagarde (post-meeting statement) says updated assessment confirms that inflation should stabilise at target in the medium-term; economy remains resilient despite challenges

STANCE:

Will follow a data-dependent, meeting-by-meeting approach
Rate decisions will be based on inflation outlook and risks, in light of incoming data, and underlying inflation, and monpol transmission
Does not pre-commit to a rate path
Ready to adjust instruments to ensure inflation stabilises at target

OUTLOOK:

Outlook is still uncertain, due to ongoing global trade policy uncertainty, geopolitical tensions
Challenges include geopolitics, trade; stronger EUR adds to challenges

ECONOMY:

Low unemployment, balance sheets, defence spending, and impact of past cuts underpin growth
Growth being driven by services
Construction momentum is picking up
Govt spending should contribute to demand

INFLATION:

Is determined to ensure inflation stabilises at target
Indicators of underlying inflation are little changed in recent months, consistent with 2% medium-term target
Wage metrics point to continued moderation in labour costs
Longer-term inflation expectations are near target, supporting near-term inflation's return back to target
Outlook for inflation more uncertain due to volatile global environment
Stronger EUR could bring down inflation more than expected, further below target
Inflation could become more persistent if energy prices rise

LABOUR MARKET:

Labour market supports incomes, even though the labour market has cooled further

GLOBAL UNCERTAINTY: