Statement Section:
1. Interest Rate Decision: The three key interest rates remained unchanged, in line with market expectations, marking the fifth consecutive meeting without action.
2. Inflation Outlook: The government is committed to ensuring inflation remains stable at the 2% target level over the medium term.
3. Economic Outlook: The economy remains resilient in a challenging environment. The economic outlook remains uncertain.
4. Policy Outlook: A data-dependent, meeting-by-meeting approach will be adopted. There is no pre-committed path for interest rates.
Lagarde's Press Conference:
1. Interest Rates: Monetary policy is in a good position and remains flexible.
2. Economy: Growth is driven by the service sector, particularly in information technology and communications. Manufacturing is resilient, and construction is picking up momentum.
3. Exchange Rates: Exchange rates were discussed today. A stronger euro could push inflation further below target. The impact of a stronger euro has been incorporated into the baseline scenario. The current dollar trading range is very close to the average.
4. Inflation Outlook: Inflation is gradually moving towards the 2% target and is expected to reach it over the medium term. Inflation could be higher if energy prices continue to rise. The inflation outlook is more uncertain than usual.
