The price of energy affects the cost of virtually everything we consume and produce. As a result, the costpush shock from an increase in energy prices is felt throughout the economy. Given that the ECB’s primary mandate is to preserve price stability, understanding the relationship between the transition to a greener economy and the price of energy is crucial.
This major step frontloaded the transition from a highly accommodative level of policy rates towards levels that will ensure the return of inflation to our 2% medium-term target. We will regularly re-evaluate our policy path in light of incoming information and the evolving inflation outlook. Our future policy rate decisions will continue to be data-dependent and follow a meeting-bymeeting approach.