Inflation is projected to remain too high for too long. Therefore, the Governing Council today decided to increase the three key ECB interest rates by 50 basis points, in line with its determination to ensure the timely return of inflation to the 2% medium-term target. The elevated level of uncertainty reinforces the importance of a data-dependent approach to the Governing Council’s policy rate decisions, which will be determined by its assessment of the inflation outlook in light of the incoming economic and financial data, the dynamics of underlying inflation, and the strength of monetary policy transmission. The Governing Council is monitoring current market tensions closely and stands ready to respond as necessary to preserve price stability and financial stability in the euro area. The euro area banking sector is resilient, with strong ca tweet at 9:17am: ECB: Inflation Too High for Too Long ECB: Data Dependent Approach Needed ECB: Stands Ready to Act As Necessary ECB: Banking Sector Resilient ECB: Toolkit Fully Equipped ECB: Governing Council Is Monitoring Current Market Tensions Closely and Stands Ready to Respond As Necessary https://t.co/ULUy8YSeSa tweet at 9:17am: #ECB IS READY TO RESPOND ON PRICE STABILITY, FINANCIAL STABILITY - BBG *ECB: TOOLKIT EQUIPPED TO PROVIDE LIQUIDITY SUPPORT IF NEEDED *ECB: TPI IS AVAILABLE FOR UNWARRANTED, DISORDERLY MARKET MOVES

tweet at 9:48am: ECB'S LAGARDE: MONITORING MARKET TENSION CLOSELY tweet at 9:49am: *LAGARDE: ECB FORECASTS WERE FINALIZED IN EARLY MARCH tweet at 9:50am: ECB PRESIDENT CHRISTINE LAGARDE: 'INFLATION IS PROJECTED TO REMAIN TOO HIGH FOR TOO LONG' #ecb #europeancentralbank #interestrates #monetarypolicy #christinelagarde tweet at 9:54am: ECB’s Lagarde: Economy to Recover Over Coming Quarters - Industrial Production Should Pick Up - Labour Market Strong - Government Energy Aid Should Be Temporary, Targeted - Important to Roll Back Support Measures Promptly tweet at 9:56am: ECB’s Lagarde: Underflying Price Pressures Remain Strong - Services Inflation Driven by Past Energy Increases - Wage Pressures Strengthened - Most Meansures of Long Term Inflation Expectations Stand Around 2%