- Inflation is still too high
- But effects of inflation shock are waning
- Economic cooldown desirable to tame inflation
- Restrictive policy will be needed for some time
- Stands ready to adjust rates further if disinflation process stalls
For one of the more hawkish members to tout more neutral policy, it says a lot about the current stance by the ECB. The question now is if the slowdown worsens at a much greater pace, how soon will it be before rate cuts come along? They aren't saying it yet but that is the take by markets right now.
