At the same time, the NBU Board sees risks that may hinder the plans to lower the rate. What inflation developments followed the last key policy rate decision? In March 2019, consumer price inflation continued to slow and reached 8.6%, in line with the NBU’s latest forecast. Core inflation declined even faster than expected – to 7.6%.
The most recent data clearly confirm that economic activity in the euro area is weakening, with contracting domestic demand and tighter financing conditions.