At yesterday’s meeting of the ECB Governing Council, we decided to keep the key interest rates unchanged. So far, broader effects from the energy shock remain contained. The economic outlook continues to be shaped by heightened geopolitical uncertainty. Risks to the inflation outlook continue to be tilted to the upside, whereas risks to the growth outlook are to the downside. Elevated energy prices are increasing production costs, and the longer the conflict in the Middle East endures, the greater the risk that these pressures broaden and become more persistent.
Read more in the press release below.