ECB Economic Bulletin: Most of the impact on inflation is expected from 2023 onward

The European Central Bank (ECB) published its Economic Bulletin article this Monday, offering details on the economic, financial and monetary developments in the Euro area.

Key highlights

Most of the impact on inflation is expected from 2023 onward.

The impact is expected to peak in 2024.

Policy tightening is estimated to have lowered inflation by around 50 bps last year.

The downward impact on inflation is expected to average around 2% over 2023-25.

Transmission of rate hikes to economic activity is faster.

Impact on GDP growth expected to peak in 2023.

Related reads

• EU Commission bumps up 2023 Eurozone GDP and inflation forecasts
• EUR/USD regains the smile and retests 1.0880