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- ECB Accounts: Doubts were raised about whether recovery would take place as expected
ECB Accounts: Doubts were raised about whether recovery would take place as expected
The accounts of the European Central Bank's (ECB) June policy meeting showed on Thursday that some members felt that the data available since the last meeting had not increased their confidence that inflation would converge to the 2%, per Reuters.
Key takeaways
"Some doubts were raised about whether the recovery would take place as expected."
"While the impact of restrictive monetary policy was seen to be gradually fading, the services sector had anyway been affected less strongly."
"Labour market, members considered that, overall, it had remained persistently robust."
"It was pointed out that projections rested on the assumption that energy and food inflation would move below their longer-term averages."
"Wages were still rising strongly."
"Members expressed different views regarding directional changes in the balance of risks."
"It would therefore still take time for more clarity to be obtained on the dynamics of important inflation drivers."
"Any further delay in bringing inflation back to target could make it more difficult to continue to anchor inflation expectations in the future."
Market reaction
The EUR/USD pair showed no immediate reaction to these comments and was last seen trading little changed on the day at around 1.0800.
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