- Rates must keep rising though long-term inflation expectations remain anchored
- Approach to policy tightening will be defined meeting by meeting based on data
- Eurozone mid-term economic prospects important to establish more appropriate final level, proceeding gradually
- Significant worsening of economic outlook is cause for concern
- Impossible to fully offset the impact of the energy shock on profits and wages
This is a dovish turn and draws the lines in the ECB debate. That said, with Dutch inflation at 17% today, there's not much an argument for staying on the sidelines.