• We will return to 2% inflation target
• To set rates at restrictive level as long as needed for that
• Eurozone will not grow as much as expected earlier, but should pick up in 2024
• Weaker growth does not mean recession

She’s not really offering too much pushback or explicitly keeping the door open for another rate hike, similar to yesterday. As for the likelihood of a recession, let’s just say it never is a good sign when policymakers have to mention the R-word itself in trying to defend their stance.

This article was written by Justin Low at www.forexlive.com.