ECB minutes indicate balanced stance of central bankers, EURUSD slightly higher

The transcript of the minutes of the ECB's last meeting, when the bankers decided to cut interest rates by 25 basis points (October 17), has just been published. Below you will find the most important conclusions from these minutes:

• The disinflationary process is well on track, with September inflation lower than expected

• Inflation convergence to 2% target now expected earlier in 2025

• Upside risks to inflation are now seen as lower, though still present

• Risk management considerations were key for the October rate cut decision

• The economic outlook shows persistent weakness, particularly in manufacturing

• Initial signs of improvement in services inflation are visible

• Early rate cut provides insurance against potential target undershooting and supports soft landing

• It remains too early to declare victory in the fight against inflation

• Some members initially preferred waiting until December for more information

• As rates approach neutral territory, extra caution needed to avoid slowing disinflation

• A large and persistent undershooting of the 2% target remains unlikely

All in all, the tone of the ECB's Minutes reflects a carefully balanced stance. While growing more confident in the disinflation process, the ECB emphasizes risk management and maintains a data-dependent approach, with particular attention to avoiding both overshooting and undershooting of the inflation target. The EURUSD pair is not reacting to the comments and extends continues slight increase to 1.05364. 

Source: xStation