In order not to draw the wrong conclusions about the growth dynamics implied in the staff projections it is important to keep this distinction in mind. In the Governing Council’s view, the uncertainty surrounding this outlook for economic growth remains high, and downside risks prevail.
In particular, risks continue to relate to the potential for the financial market turbulence to have a more negative impact on the real economy than anticipated. Moreover, downside risks stem from the dampening impact on consumption and investment of further unanticipated increases in energy and food prices.