As noted in the recent statement, the MPC is prepared to take appropriate action should the need arise. 4  BIS central bankers’ speeches  In conclusion, the European environment holds many uncertainties and possible unthinkable consequences, and it is difficult to preempt this in our policy choices.
At the same time, the combination of rising inflation and sluggish domestic growth holds the risk of a stagflationary environment. Monetary policy will maintain its focus on achieving the inflation target over the medium term, but will remain sensitive to the domestic economic situation.