Published on Thursday, February 3, 2022 | Updated on Friday, February 4, 2022

Europe | Readying to act but not overreact on inflation risks

The ECB left all its key monetary policy settings unchanged today, in turn confirming the decisions taken at the previous meeting, but clearly sounded more concerned about rising upside risks to the inflation outlook. Mrs. Lagarde postponed any eventual reaction to these risks to be addressed during the March meeting

Key points

  • Key points:
  • The ECB warned that risks to the inflation outlook are tilted to the upside
  • The ECB seems much more open now to accelerate policy normalization in the coming meetings

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