Policy rate unchanged at 1.75 per cent

The Executive Board has decided to leave the policy rate unchanged at 1.75 per cent. But economic activity is stronger and the supply shocks are continuing. The Executive Board therefore assesses that the policy rate should be raised more going forward than projected in the June forecast, for inflation to stabilise around 2 per cent. If the outlook for inflation and economic activity remains unchanged, it is expected that the increases to the policy rate will begin this year.