schnabel 18 October 2022
  • Also cannot predict for how long rates will have to stay at restrictive levels
  • After more than a year of significant monetary tightening, the outlook for the euro area remains highly uncertain
  • Activity has moderated visibly, and forward-looking indicators signal weakness ahead
  • Headline inflation has come down but underlying price pressures remain stubbornly high
  • Assessing the monetary policy stance meeting-by-meeting and adjusting it when necessary will ensure that it remains appropriate at all times
  • Over the past few months, however, economic sentiment has steadily deteriorated
  • Reported orders and activity in the services sector are now declining

That's not a lot of confidence that policymakers got a clue of what they are doing ahead of the September meeting. 🤦

Odds of a Sept hike are down to 27% from 40% before these comments.