Disinflationary process is well on trackInflation had turned out lower than expected in SeptemberUpside risks to inflation are also now seen as lowerInflation would probably reach 2% target somewhat earlierBut still too early to declare victory in the fight against inflationA few members initially expressed a view that they would have preferred to accrue more information and to wait until DecemberThe closer rates are to neutral territory, the more cautious one would have to be that monetary policy itself did not become a factor in slowing down the pace of disinflationFull accounts
With Trump tariffs now looming large, the outlook has now changed considerably for the ECB. And that is a key risk to take into account when they enter into discussions in December.
This article was written by Justin Low at www.forexlive.com.
