- A large number of members initially wanted to raise the rate by 75 bp at the December meeting.
- Minutes show mistrust regarding long-term inflation projections.
- The euro will not be affected by the minutes.
The minutes of the last meeting of the Governing Board of the European Central Bank (ECB) showed that a large number of members expressed a preference for a 75 basis point hike in reference rates. At that meeting, held on December 15, the central bank raised rates by 25 basis points.
A large majority ended up supporting the rise of 50 points. The document indicates that there were members who preferred a faster rate of quantitative tightening.
They see the risks in the inflation outlook mostly upward skewed. The two- and three-year inflation projections are imprecise, the minutes read.
The euro was not affected by the minutes. EUR/USD continued to move above 1.0810 while EUR/GBP above 0.8750.
Source: Fx Street
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