Professor Michael McMahon:

To be honest, I worry a little on the other side. By moving less than everybody else, the risk is the value of the euro will depreciate further, which would make everything imported into the euro area expensive. Of course, some of the big items imported to the euro area are gas and oil, which are already expensive. It is difficult and they are striking a difficult balance. They also do not want to kick the economy straight into a massive recession, which would get inflation down but at huge social cost.