Our monetary policy statement at a glance - February 2022
What are the main points?
The euro area economy is continuing to recover
In the early part of the year, growth will be weaker because the pandemic is still weighing on activity. But with many people now vaccinated, society and the economy are coping better with the pandemic than before.
High energy prices and shortages are holding back the economy for now…
Shortages of materials, equipment and labour are still slowing activity. High energy costs are hurting people’s incomes and limiting what they can spend. Firms are also investing less.
… but we expect the economy to get better later in the year
Supply bottlenecks may be starting to ease. With more people in jobs, households should enjoy higher incomes and spend more. Support from policy and the global recovery are also helping the economy to rebound strongly.
Inflation is likely to remain high for longer than previously expected…
Energy prices are the main reason for this. But prices for food and a wider range of goods and services are also going up.
…but inflation is likely to decline in the course of this year
The pressure on prices from energy markets and bottlenecks in the economy should decrease.
What did we decide?
Our policy remains focused on the medium term
We will discontinue net purchases under our pandemic emergency purchase programme at the end of March 2022. But, more than ever, our policy has to stay flexible and keep options open to make sure inflation stabilises at our target of 2% over the medium term.