Lagarde October 27 2022
  • Inflation remains far too high
  • Consumer and business confidence has fallen rapidly
  • Expect further economic weakening in remainder of this year and next year
  • Expect economy to slow down substantially over remainder of the year
  • Cites weaker global demand and also due to tighter monetary policy
  • The post-pandemic rebound in services demand is slowing
  • Labour market performed well but somewhat higher unemployment possible as economy slows
  • Inflation-shielding should be targeted at the most vulnerable
  • Risks to economic outlook clearly on the downside, cites war, supply disruptions and weakening world economy
  • Risks to the inflation outlook are primarily on the outside, led by retail energy prices
  • A weakening of demand would lower prices pressures
  • Bank lending to firms remains robust
  • We expect to raise interest rates further
  • With this third major hike in a row, we have made substantial progress in withdrawing accommodation
  • Future decisions will continue to be data dependent and we stand ready to adjust all instruments

There's nothing surprising here.