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ECB Minutes: Several members initially expressed wishes for a 75 basis point hike

  • 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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This article is published in issue 49 of Vanity Fair on newsstands until 5 December 2023. To celebrate our #20changes

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