“The Governing Council’s future decisions will ensure that its policy rates will be set at sufficiently restrictive levels for as long as necessary,” the European Central Bank’s (ECB) Economic Bulletin showed on Thursday.

Additional takeaways

The Governing Council will continue to follow a data-dependent approach to determining the appropriate level and duration of restriction. 

The incoming information broadly confirmed its previous assessment of the medium-term inflation outlook.

The euro area economy is likely to have stagnated in the final quarter of 2023.