For comparison, previous rate hiking cycles in the euro area in 1999-2000 and 2005-07 saw rates rise by 2.25 and 2 percentage points over a 13 and 21 month period, respectively. Today I will highlight my view on the key factors that will influence the future path of monetary policy.
They include both the data I am monitoring, and how I react to this data when making policy decisions. The first is the assessment of the inflation outlook in light of the incoming economic and financial data, as embedded in the economic narrative underlying the quarterly projections.