Key takeaways from policy statement<\/p>\n\n\n\n
“This major step frontloads transition from prevailing highly accommodative level of policy rates towards levels that will ensure timely return of inflation to ECB’s 2% medium-term target.”<\/p>\n\n\n\n
“Based on current assessment, over next several meetings, ECB expects to raise interest rates further to dampen demand and guard against the risk of a persistent upward shift in inflation expectations.”<\/p>\n\n\n\n
“Will regularly re-evaluate its policy path in light of incoming information and evolving inflation outlook.”<\/p>\n\n\n\n
“Future policy rate decisions will continue to be data-dependent and follow a meeting-by-meeting approach.”<\/p>\n\n\n\n
“Soaring energy and food prices, demand pressures in some sectors owing to the reopening of the economy, and supply bottlenecks are still driving up inflation.”<\/p>\n\n\n\n
“Price pressures have continued to strengthen and broaden across the economy and inflation may rise further in the near term.”<\/p>\n\n\n\n
“As current drivers of inflation fade over time and normalisation of monetary policy works its way through to economy and price-setting, inflation will come down.”<\/p>\n\n\n\n
“ECB staff have significantly revised up their inflation projections and inflation is now expected to average 8.1% in 2022, 5.5% in 2023 and 2.3% in 2024.”<\/p>\n\n\n\n
“After a rebound in first half of 2022, recent data point to a substantial slowdown in euro area economic growth, with economy expected to stagnate later in year and in first quarter of 2023.”<\/p>\n\n\n\n
“Very high energy prices are reducing purchasing power of people\u2019s incomes and, although supply bottlenecks are easing, they are still constraining economic activity.”<\/p>\n\n\n\n
“In addition, adverse geopolitical situation, especially Russia’s unjustified aggression towards Ukraine, is weighing on confidence of businesses and consumers.”<\/p>\n\n\n\n
“This outlook is reflected in latest staff projections for economic growth, which have been revised down markedly for remainder of current year and throughout 2023.”<\/p>\n\n\n\n
“Staff now expect economy to grow by 3.1% in 2022, 0.9% in 2023 and 1.9% in 2024.”<\/p>\n\n\n\n
“Lasting vulnerabilities caused by pandemic still pose a risk to smooth transmission of monetary policy.”<\/p>\n\n\n\n
“ECB will therefore continue applying flexibility in reinvesting redemptions coming due in pandemic emergency purchase programme portfolio, with a view to countering risks to transmission mechanism related to pandemic.”<\/p>\n","protected":false},"excerpt":{"rendered":"
Key takeaways from policy statement “This major step frontloads transition from prevailing highly accommodative level of policy rates towards levels that will ensure timely return of inflation to ECB’s 2% medium-term target.” “Based on current assessment, over next several meetings, ECB expects to raise interest rates further to dampen demand and guard against the risk …<\/p>\n","protected":false},"author":9,"featured_media":31507,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[37,36],"tags":[6923,8143,9837],"class_list":["post-71801","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-forex-markets","category-market-updates","tag-ecb","tag-interest-rate-hikes","tag-mario-draghi"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/71801","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=71801"}],"version-history":[{"count":2,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/71801\/revisions"}],"predecessor-version":[{"id":71814,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/71801\/revisions\/71814"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/31507"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=71801"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=71801"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=71801"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}