Minutes from the European Central Bank’s (ECB) June monetary policy meeting showed on Thursday that some members felt that data available since the last meeting had not increased their confidence that inflation would converge to 2%, according to Reuters.
Highlights
“There were some doubts about whether the recovery would take place as expected.”
“Although the impact of the restrictive monetary policy was considered to be gradually easing, the services sector had been less affected anyway.”
“Members considered that, overall, the labour market had remained persistently robust.”
“It was noted that the projections were based on the assumption that energy and food inflation would move below their long-term averages.”
“Wages continue to rise sharply.”
“Members expressed different views on directional shifts in the balance of risks.”
“Therefore, it would still take time to gain more clarity on the dynamics of the important drivers of inflation.”
“Any further delay in bringing inflation back to target could make it more difficult to anchor inflation expectations going forward.”
Market reaction
The EUR/USD pair showed no immediate reaction to these comments and was last seen trading flat on the day around 1.0800.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
