Ms Schnabel noted that uncertainty had increased in financial markets since the Governing Council’s previous monetary policy meeting on 7-8 September 2022. This had occurred amid persistently high inflation and elevated fears of a recession, with increased attention on potential financial instability. Inflation concerns had remained the dominant driver of financial market developments, as inflation outcomes had continued to surprise to the upside, leading to a renewed adjustment of market expectations for monetary policy globally. Against the background of persistent inflation surprises, investors had sharply revised ... (full story)