If high inflation threatens to become entrenched, we must resolutely raise our key rates further and adopt a restrictive stance. If we don’t act decisively now, we run the risk of having to tighten monetary policy all the more later. That would put even more strain on households, businesses and the financial system.
This is why it would be wrong to hold back on further decisive steps for fear of a downturn. Of course, we are closely watching the development of economic activity. And yes, to the extent that output is growing more slowly or is falling due to weaker aggregate demand, there will be less inflationary pressure.