Across the last three Governing Council meetings, we have increased our interest rates by 200 basis points. This is the fastest rate hike in the ECB’s history. Looking ahead, the medium-term inflation outlook presents clear upside risks in a general context of extraordinary uncertainty about the future evolution of the European economy.
Domestic demand, including business fixed investment, remains resilient as a trend, although a decline in demand following the consumption tax hike in April this year – mainly in private consumption such as durable goods – can be observed.