We will report on the outcome of today’s meeting of the Governing Council, which was also attended by Commissioner Rehn. Based on its regular economic and monetary analyses, the Governing Council decided to keep the key ECB interest rates unchanged, following the 25 basis point increase on 7 July 2011.
It may be necessary to capture these nuances and their relationship with policy response in the context of inflationary expectations. It will be interesting to recall the experience of rise in headline inflation and divergence between WPI and CPI in our country.