Felix Feather, economist at Aberdeen Group, said in a note that more important
than the ECB’s rate move was its acknowledgement that the economy is stronger
than expected a few months ago and the inflation outlook is more persistent.
"This updated forecast speaks volumes," he wrote. He added that despite rising
energy prices and heightened geopolitical uncertainty, the euro-area economy has
shown unusually strong resilience, prompting policymakers to lift growth
forecasts, while inflation projections were revised up amid sustained energy
costs and the risk inflation may remain above target for longer.
