Based on its current assessment, the Governing Council decided to raise the three key ECB interest rates by 75 basis points. 

The Governing Council took this decision, and expects to raise interest rates further, because inflation remains far too high and is likely to stay above its target for an extended period.

ECB members now expect the economy to grow by 3.1% in 2022, 0.9% in 2023 and 1.9% in 2024.

ECB staff macroeconomic projections for the euro area foresee headline inflation remaining elevated in the near term, before falling back to averages of 5.5% in 2023 and 2.3% in 2024.

The baseline fiscal projections continue to be surrounded by high levels of uncertainty, mainly related to the war in Ukraine and developments in energy markets. 

Growing concerns about the economic outlook and tightening monetary policy continued to weigh on euro area corporate bond spreads, which widened overall during the review period.