ECB President Lagarde (post-meeting statement) says energy prices have continued to rise, presenting risks to the inflation outlook, and downside risks to growth

STANCE: Remains well-positioned to navigate uncertainty Will set policy on a data-dependent, meeting-by-meeting basis Not pre-committing to any rate path Stands ready to adjust all instruments to achieve inflation goals INFLATION: Underlying inflation has been stable so far Energy price increases have hit consumer confidence Underlying inflation has been broadly stable Wage pressures remain moderate (prev. said 'wages do not show a material response to the energy shock at this stage') Wage tracker points to 2.5-2.8% growth in remaining months of the year Longer-term inflation expectations are around target Energy inflation will rise in the near-term; thereafter, decline in energy inflation and higher rates should help bring inflation down Inflation could be lower if geopolitics were resolved ECONOMY: Data suggests Euro area continued to expand in Q3 Growth should be underpinned in the near-term AI investment and government spending should support growth Export growth should pick-up ahead Says fiscal sustainability is crucial anchor for broader stability Fiscal uncertainty may tighten financing conditions Renewed trade tensions could worsen capacity constraints in Europe FINANCIAL CONDITIONS: Financing conditions have tightened since last meeting BALANCE OF RISKS: Risks to the growth outlook are to the downside; growth could be higher if economy adapts to ongoing conflicts, or if conflicts were resolved Risks to inflation are to the upside due to Middle East conflict, and Russia-Ukraine war