The minutes of the October monetary policy meeting European Central Bank (ECB) revealed on Thursday that some members of the Governing Council expressed a preference for raising the official interest rate by 50 basis points (bp) instead of 75. Members generally shared the view that the inflation outlook continued to worsen. , which implies a risk that rising inflation will take hold.
the panorama of a inflation too high, above the target and with risks of it taking hold, lead the ECB to show determination, the minutes explain. The Governing Council should continue to normalize and tighten monetary policy, while it could pause in the event of a prolonged and deep recession. Officials said that “the weakening of economic activity would not be enough to curb inflation significantly.”
Over the wagesofficials see that they are accelerating but they still see it moderate.
The rise of 75 basis points was supported by a large majority and they stated that this is what the market was discounting.
Source: Fx Street