Looking forward, the Governing Council has reinforced the importance of a datadependent approach to the subsequent policy rate decisions, taking into account the elevated level of uncertainty brought about by recent financial market tensions.
The Council’s reaction function and its future decisions will be guided by the evolution of the inflation outlook, in light of the incoming economic and financial data, the dynamics of underlying inflation, and the strength of monetary policy transmission. With risks to medium-term price stability increasing sharply in 2022, the pace and scale of the adjustment of the official interest rates has been unprecedented.