Highlights:

• The message sent at the March meeting was one of strong continuity: short-term forecasts for growth and inflation were revised substantially up, and the healing of the labour market is expected to proceed faster. However, the medium-term view did not change much, especially for inflation.
• As a consequence, the monetary policy path remains the same: no rate hikes are deemed appropriated before end-2023. Similarly, any talk of tapering remains premature. Any change of direction is predicated on actual data, not on expectations.
• The rise in bond yields was put into perspective: overall financial conditions remain favourable and do not require any changes to the composition of bond holdings. On banking, changes to the leverage regulation and to restrictions on dividend are forthcoming, but not details were provided.

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