ECB minutes: Key Takeaways

The publication did not bring much surprise. During the last meeting ECB noted possibility that pandemic might have longer-lasting effects which will take a toll on demand side, supply side, reducing growth potential. Policymakers stressed that any sign of complacency could be detrimental.  At the same time, policymakers viewed the existing stimulus measures as effective, but questioned about possible side effects and “diminishing returns” in an environment of high uncertainty and very favorable financial conditions. Overall, members considered the risks surrounding the growth outlook to be clearly tilted to the downside, while headline inflation was now expected to be in negative territory for longer than had been foreseen in the September projections.

There is no reaction to the release on the markets, EURUSD moved only slightly lower and then recovered. Pair still remains slightly below the key 1.19 level.