In the view of the Governing Council, uncertainty surrounding growth prospects is particularly high at the current juncture, with downside risks mainly relating to renewed increases in energy and food prices and a potentially more negative impact of financial market developments than currently foreseen. The monetary analysis confirms the prevailing upside risks to price stability at medium to longer horizons.
While money and credit growth are now showing some signs of moderation, the still strong underlying pace points to continued upside risks to price stability over the medium term. In addition, available data suggest that the ongoing financial tensions have, as yet, not significantly affected the availability of bank credit.