- The current interest rate is appropriate based on inflation developments, our projections and the transmission of monetary policy.
- We are living in a very complex and uncertain world with numerous risks.
- Despite rising real incomes, consumption remains subdued. Maybe because households fear higher taxes in the future.
- Markets are not always wrong, but they are not always right either.
- Thursday decision was unanimous.
- We all agree we must keep all options open.
- If the situation changes, we will adjust out stance accordingly.
- An independent central bank is the best protection against high inflation.
- Inflation expectations only stay low if investors and consumers trust the central bank to keep prices stable.
- It's particularly critical if monetary policy is constrained by fiscal policy - what we can fiscal dominance.
He's not saying much here in terms of forward guidance. He just keeps things neutral not hinting to any particular move. In case the dollar weakens further though, EURUSD could break the 1.20 level which de Guindos once labelled as a line in the sand for them. In that case, the stronger Euro could put downward pressure on inflation and might force them to cut.
