ECB Accounts: Some members expressed preference for maintaining rates at current levels
|The accounts of the European Central Bank's (ECB) September policy meeting revealed on Thursday that some members of the Governing Council expressed a preference for maintaining key rates at current levels, per Reuters.
Key takeaways
"Solid majority of members expressed support for the 25 basis point rate increase."
"Emphasis was also placed on the upward revisions to the headline inflation projections for the first two years."
"Pause could give rise to speculation that the tightening cycle was over."
"Not hiking could also send a signal of the governing council being more concerned about the economy and a potential recession than too high inflation."
"Having been able to keep inflation expectations anchored, despite the long period in which inflation had been above target, was seen as a major achievement."
"Deposit facility rate in the region of 3.75% to 4.00%, as long as it was understood as being maintained for a sufficiently long duration, should be consistent with a return of inflation to target."
"Decision between raising rates and pausing was a close call, and that tactical considerations also played a role."
"A range of model-based simulations suggested that a deposit facility rate in the region of 3.75% to 4.00% should be consistent with a return of inflation to target."
Market reaction
EUR/USD largely ignore this publication and was last seen trading flat on the day slightly above 1.0600.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.