- Higher inflation forecasts mainly reflect higher energy
- Rates will remain at sufficiently restrictive levels for as long as necessary
- Rates were hiked to 'reinforce commitment to our target'
- The economy is likely to remain subdued in the coming months
- The services sector, which had been resilient, is now slowing
- Recent indicators suggest a weak Q3
- Labor market remains resilient
- In the coming months inflation will fall
- Most measures of underlying inflation are starting to fall
- The risks to economic growth are tilted to the downside
- We will continue to follow a data dependent model and stand ready to adjust all our instruments
The euro sagged as she highlighted downside economic risks.
The forecasts were out earlier with the decision:
- 2023 GDP at 0.7% (previously 0.9%)
- 2024 GDP at 1.0% (previously 1.5%)
- 2025 GDP at 1.5% (previously 1.6%)
- 2023 inflation at 5.6% (previously 5.4%)
- 2024 inflation at 3.2% (previously 3.0%)
- 2025 inflation at 2.1% (previously 2.2%)