ECB's Lane says current information on underlying inflation pressures suggests that it will be appropriate to raise rates further beyond our March meeting

• "while the exact calibration beyond March should reflect the information contained in the upcoming macroeconomic projections, together with the incoming data on inflation and the operation of the monetary transmission mechanism."
• "the latest observations point to weaker pressures from the energy commodities, non-energy and non-food commodities, global and domestic economic activity and supply side bottlenecks."
• "the dampening of demand through the tightening of monetary policy means that price setters and wage setters are on notice that excessive price and wage increases will not be sustainable."
• "While there has been a clear turnaround in energy inflation and there are some signs of deceleration for food inflation, momentum for core inflation has not declined. In particular, momentum in the goods category remains strong."
• "the wage adjustment process may put upward pressure on price inflation over the next two or three years, even if the long-term behaviour of wages were ultimately unaffected by the current inflation shock (with the stability of long-term inflation expectations and aligned long-term wage dynamics reinforcing each other)."

Via ECB