And upside risks clearly predominate at the moment. First, tensions in energy markets could persist for longer than assumed in the forecasts. Second, the still high commodity prices could be passed on to consumers to a greater extent than is usually the case. And third, wages could rise more strongly than expected, partly in response to inflation surprises.
3 Monetary policy In view of these price developments and the outlook for inflation, the ECB Governing Council is acting decisively. We have taken the first steps towards normalising monetary policy. In our July meeting, we set the interest rate reversal in motion. We raised key interest rates by 0.5 percentage point and brought the chapter of negative deposit rates to a close.