In early June, the Council also announced that the key interest rates – with that on banks’ deposits with the Eurosystem being exceptionally negative – will be increased by 25 basis points in its July monetary policy meeting and that, if the medium‑term inflation outlook persists or deteriorates, a larger increment could be appropriate in September.
A gradual but sustained path of further increases in the key interest rates will continue after that date, but its pace will depend on incoming economic and financial data and on how they will alter our assessment of the medium-term outlook for prices.