ECB minutes indicate conservative stance of central bankers

The transcript of the minutes of the ECB's last meeting, when the bankers decided to cut interest rates by 25 basis points (September 12), has just been published. Below you will find the most important conclusions from these minutes:

• Inflation is very likely to rebound in the last quarter of this year
• Its decline is expected to be well noticed in the second half of next year
• As a result, the ECB has to decide cautiously vis-à-vis its next monetary decisions
• This thus implies a degree of caution for the future
• The economic outlook for the European Union, on the other hand, has worsened 
• Core inflation may prove harder to combat in the medium term
• It is too early to declare victory over inflation
• The mandate leaves itself every opportunity to make due adjustments

All in all, the tone of the ECB's Minutes is taking on a more hawkish tone. Bankers are concerned about a rebound in inflation, which could imply a slower pace of interest rate cuts in the Eurozone in the medium term. The EURUSD pair, however, is not reacting hawkishly to these comments and extends declines below 1.093.