- We can now see that our efforts to bring inflation down have been effective
- We continue to expect inflation to stabilise at our 2% target in the medium-term
- We therefore decided to keep key ECB interest rates unchanged at our monetary policy meeting earlier this month
- We will continue to follow a data-dependent and meeting-by-meeting approach to determining the appropriate monetary policy stance
- Our interest rate decisions will be based on our assessment of the inflation outlook and the risks surrounding it
- We are not pre-committing to a particular interest rate path
- The ECB pays close attention to households’ inflation perceptions
- Inflation perceptions matter for three reasons
- First, perceptions directly influence economic behaviour
- Second, perceptions of current inflation shape expectations about future inflation
- Third, inflation perceptions can influence public trust in institutions - including the ECB
- Full transcript
There's nothing in her speech that really stands out from what has already been communicated before this. The ECB remains on the sidelines and are not yet in a position to pre-commit to moving just yet. As things stand, markets are also not pricing in any rate changes by the central bank for the whole of this year.
