- Assessment of inflation outlook was broadly unchanged
- The view was expressed that the rate-cutting cycle had come to an end
- That since the current favourable outlook was likely to be maintained unless risks materialised
- Taking a steady hand approach could increase the chances of remaining in a good place
- From a strategic standpoint, monetary policy stance should not be fine-tuned in response to moderate and temporary fluctuations of inflation around target but should only be adjusted if a significant deviation from target was expected over the medium-term
- Most members viewed the risks surrounding the inflation outlook as two-sided
- The outlook for inflation continued to be more uncertain than usual
- Overall, there continued to be a high option value to waiting for more information
- Monetary policy is in a good place, though this should not be seen as a fixed place
- Full accounts
There’s nothing new there that we don’t already know. That as the ECB continues to want optionality and flexibility over anything else. And as things stand, the data doesn’t compel them to rush any further rate cuts. The point on it being the end of the rate-cutting cycle is interesting though. I would argue that the situation remains fluid, so I wouldn’t ascribe that point to being a stance that they would stubbornly stick to.
This article was written by Justin Low at investinglive.com.
