In the minutes of the last meeting of the Governing Board of the European Central Bank (ECB) it is read that a large number of members have the view that the current levels of inflation and its persistence, make it necessary to immediately take more steps towards a normalization in monetary policy.
According to the document, Inflation is projected to remain above target in 2023. Members see the current policy as very accommodative.
It was argued that three conditions of the guides to the future (of interest rate hikes) have been met.. They see that a longer period of above-target inflation will lead to increasing risks of a de-anchoring of inflation expectations.
The euro rose in the market after the publication of the minutes. The EUR/USD returned above 1.0900, extending the rebound from four-week lows.
Source: Fx Street
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