- Also cannot predict for how long rates will have to stay at restrictive levels
- After more than a year of significant monetary tightening, the outlook for the euro area remains highly uncertain
- Activity has moderated visibly, and forward-looking indicators signal weakness ahead
- Headline inflation has come down but underlying price pressures remain stubbornly high
- Assessing the monetary policy stance meeting-by-meeting and adjusting it when necessary will ensure that it remains appropriate at all times
- Over the past few months, however, economic sentiment has steadily deteriorated
- Reported orders and activity in the services sector are now declining
That's not a lot of confidence that policymakers got a clue of what they are doing ahead of the September meeting. 🤦
Odds of a Sept hike are down to 27% from 40% before these comments.