ECB Accounts: Further rate hikes required for policy to enter restrictive territory
|The accounts of the European Central Bank's (ECB) February policy meeting revealed on Thursday that Governing Council members agreed that further increases in key rates are required for policy to enter restrictive territory, per Reuters.
Additional takeaways
"Policy rates were, at present, barely consistent with the range of estimates for the neutral rate."
"The view was expressed that there continued to be value in frontloading rate hikes at the present stage."
"Reservations were expressed on the proposed communication of an intention for the March meeting."
"It was noted that the short-term momentum in core inflation had also started to decline somewhat."
"Markets were now paying more attention to core inflation than to headline inflation to gauge underlying inflationary pressures."
"Members agreed that there were no signs of a wage-price spiral."
"Wage pressures were broadening."
"A better than expected growth outlook would contribute to continued inflationary pressures."
Market reaction
EUR/USD showed no immediate reaction to these comments and was last seen losing 0.4% on the day at 1.0622.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.