Although inflation has declined, it is “expected to remain too high for too long.”

The ECB said that, although inflation has declined, it is “expected to remain too high for too long.” Consequently, it deemed it necessary to implement yet another increase of 25 basis points (bps). It said that, under current conditions, there is an “expectation that inflation will drop further over the remainder of the year but will stay above target for an extended period.” It expressed particular concern about the persistence of underlying inflation.