In contrast, real activity in the euro area slowed down later and less dramatically than in the US. At the same time, since 2001 productivity growth (and other supply shocks) surprised on the downside.
We are now about halfway through the intermeeting period. Our decision at the September meeting will depend on the totality of the incoming data and the evolving outlook. At some point, as the stance of monetary policy tightens further, it likely will become appropriate to slow the pace of increases. Restoring price stability will likely require maintaining a restrictive policy stance for some time.