Outlook remained heavily dependent on the evolution of services inflation – ECB accounts

• Disinflationary process was well on track.
• Inflation was still expected to remain above target in the near term.
• Confidence in a timely and sutained convergence had increased.
• High levels of uncertainty, lingering upside risks to energy and food prices, a strong labour market and high negotiated wage increases called for caution.
• Potential future actions by the US Administration that might lead to a global economic slowdown.
• Oil and gas prices up to now did not suggest a major change to the baseline in the staff projections.
• It was relatively safe to make the assessment that monetary policy was still restrictive.

This article was written by Giuseppe Dellamotta at www.forexlive.com.