ECB raises its rates by 25bps as expected; ECB reiterates it is not pre-committing to a particular rate path; says inflation is set to remain well above target for an extended period

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ECB raises its rates by 25bps as expected; ECB reiterates it is not pre-committing to a particular rate path; says inflation is set to remain well above target for an extended period

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GUIDANCE:

  • Reiterates that he Governing Council is not pre-committing to a particular rate path.
  • Reiterates that the ECB will follow a data-dependent and meeting-by-meeting approach to determining the appropriate monetary policy stance

INFLATION

  • Inflation is set to remain well above target for an extended period.

ECONOMIC OUTLOOK

  • The outlook remains highly uncertain, with risks to the upside for inflation and to the downside for economic growth.

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