Our monetary policy statement at a glance - April 2022
What are the main points?
The war in Ukraine is severely affecting the economy
In the near future, the economy will grow more slowly. Very high prices for energy and raw materials are holding back production and reducing people’s purchasing power.
There is high uncertainty about the near future
This makes consumers and businesses less confident.
The war is creating new supply bottlenecks
These add to the difficulties for supply chains caused by recent pandemic measures in Asia. This is disrupting production in some sectors.
But the reopening after the crisis phase of the pandemic is supporting the economy
Many employers are looking for workers and more people have jobs and income to spend. People’s savings during the pandemic and government support also help the economy.
Inflation has increased significantly and will stay high over the coming months
Energy prices are by far the most important reason for this. But prices for food and for a wide range of goods and services are also going up.
What did we decide?
Our policy has to stay flexible and keep options open.
Any change will depend on how the economy evolves and how we assess the outlook. We expect to conclude net asset purchases under our asset purchase programme in the third quarter of this year.