• ELEVATED INFLATION MORE PERSISTENT THAN THOUGHT
• PRICE EXPECTATIONS BETTER ANCHORED THAN IN PAST
• POLICY COMMUNICATION CURRENTLY MORE CHALLENGING
• SAYS CENTRAL BANKS MUST MATCH WORDS WITH DEEDS
• MARKET TURMOIL CONFIRMS ECB'S MONETARY ANALYSIS
• ECONOMIC FORECASTS HAVE BECOME MORE DIFFICULT
• HEIGHTENING AWARENESS OF WORSENING CPI RISK
• PRICE EXPECTATIONS STOPPED RISING AFTER RATE HIKE
• TIMELY RATE MOVE BETTER THAN LATE CORRECTIONS

Analysis:  The sabre rattling continues from the ECB about inflation.  They are intent on wringing out the secondary effects of inflation. 

Note that ECB President Jean-Claude Trichet was quoted earlier in an interview that the ECB would do what is appropriate to maintain price stability and avoid the second round effects of inflation.