However, they retain the view that its policy will have more and a bigger impact to come. Adding that much of it is only to be expected in 2024. Some notes from the latest ECB bulletin:
- Most of the impact on inflation is expected from 2023 onward
- The impact is expected to peak in 2024
- Policy tightening is estimated to have lowered inflation by around 50 bps last year
- Downward impact on inflation is expected to average around 2% over 2023-25
- Transmission of rate hikes to economic activity is faster
- Impact on GDP growth expected to peak in 2023
