Output growth is slowing down substantially and is expected to stagnate around year-end and remain low next year at less than 1%, while risks have intensified on the downside. This is set against a deteriorating inflation outlook with record-high inflation rates expected to stay elevated, well above our target, with risks primarily on the upside.
As we move further in time, the main instrument for shaping the stance will again become the key policy rates, including forward guidance about their likely evolution. As such, our communication will likely be further specified and calibrated to ensure that inflation continues to evolve in line with our objective.