- Monetary policy should continue to keep a steady hand
- Upside risks to inflation are starting to dominate
- Tariffs, services inflation, food inflation and fiscal policy are potential drivers of that
- Tariffs are to have a net inflationary effect towards the supply chain
- Euro area economic growth is to exceed potential
- Passthrough impact from stronger euro is to be limited
This mostly just reaffirms the communique from last week, in which we saw Lagarde describe the balance of risks as now being more 'balanced' as opposed to previously being 'to the downside'.
