Minutes from the latest ECB meeting have just been released, however did not cause any major moves on the market as discussions took place 3 weeks ago, followed by the publication of a number of important economic data, therefore views included in the documents are somewhat outdated.
Here are key takeaways from the document:-
Better than expected growth outlook would contribute to continued inflationary pressures, which were unlikely to abate by themselves without further significant policy tightening.
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Members agreed that there were no signs of a wage-price spiral, though wage pressures were broadening.
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To gauge underlying inflationary pressures, markets are now paying more attention to core inflation rather than headline inflation.
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It was noted that the short-term momentum in core inflation had also started to decline somewhat.
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The underlying situation is not very different from December.
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Reservations were expressed on the proposed communication of an intention for the March meeting.
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The recent developments are in line with a `soft landing'.
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The view was expressed that there continued to be value in frontloading rate hikes at the present stage.
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Further increases were required for the governing council’s policy rates to enter restrictive territory.
EURUSD is rather unimpressed by ECB Minutes. The pair continues to trade around 1.0620 level. Source: xStation5
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