- Short-term volatility in financial markets does not translate into risks for the macroeconomic outlook
- Must remain steadfast and ready to act as required to ensure we reach our target over the medium-term
- Must remain alert to the longer lags in the transmission of monetary policy to growth and inflation
- If we end up in a wage-price spiral, it would call for stronger monetary response but so far there has been no indication that expectations have become de-anchored
There isn't much here to digest. The market is pricing in about 50 bps more of hiking from the ECB, up to 3.50%.
