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An accommodative policy will be maintained, without risk of overheating

The officials of the European Central Bank (ECB) in charge of defining monetary policy They assured that they will maintain an accommodative monetary policy for as long as necessary and saw no risk of overheating, minutes from the last meeting of the ECB’s governing board showed Thursday.

“The view was held that the observed rise in sovereign yields had remained contained and to some extent decoupled from developments in the United States,” the minutes read. The document noted that these increases had come from very low levels. Yield increases should be steep and persistent to have a material impact.

“All members joined in a broad consensus around the proposal presented by Mr. Lane, with the understanding that the total endowment of the PEPP (pandemic purchasing program) was not being questioned under current conditions and that the pace of purchases could be reduced, “according to the document. It was also agreed with Lane that ample monetary stimulus was still necessary.

Members noted that the Governing Council needed to avoid giving the impression of being too focused on sovereign returns or reacting mechanically. Among the arguments, it was noted that higher real rates were not necessarily a cause for concern.

The euro was not affected by the data. The EUR / USD rises modestly on Thursday and is trading at 1.1880, while the EUR / GBP does not register significant variations and is located at 0.8630.


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