ECB raises its rates by 25bps as expected; ECB reiterates it is not pre-committing to a particular rate path; says inflation is set to remain well above target for an extended period

GUIDANCE: Reiterates that the Governing Council is not pre-committing to a particular rate path. Reiterates that the ECB will follow a data-dependent and meeting-by-meeting approach to determining the appropriate monetary policy stance. Governing Council stands ready to adjust all of its instruments within its mandate to ensure that inflation stabilises at its 2% target in the medium term and to preserve the smooth functioning of monetary policy transmission. INFLATION Inflation is set to remain well above target for an extended period. ECONOMIC OUTLOOK The outlook remains highly uncertain, with risks to the upside for inflation and to the downside for economic growth. APP/PEPP APP and PEPP portfolios are declining at a measured and predictable pace.