- The near-term economic outlook remains weak in line with our projections
- Financial conditions have loosened more than projected, while energy prices have been weaker
- The drop in unemployment to a historical low confirms continued strong resilience in labour markets, which is broadly in line with the December 2023 staff projections
- As inflation falls, we continue to expect a gradual decline in wage growth in 2024
- Markets understand well that our policy is data-dependent and we have clearly defined the elements of our reaction function
- Our projections foresee inflation reaching our 2% target in 2025. So we are on the right track. Geopolitical tensions are one of the upside risks to inflation as they could drive up energy prices or freight costs. That’s why we need to remain vigilant.
- It's too early to discuss rate cuts
- We expect inflation to reach 2% in 2025 and project that we can achieve this without causing a deep or prolonged recession
So far all the comments are right in line with what she's been saying for awhile.
