ECB minutes: current monetary policy stance is appropriate
|Below are some of the key highlights from accounts (minutes) of the ECB monetary policy meeting held in December, released this Thursday.
• Forward guidance, language around policy stance could be revisited in early 2018
• Saw "some comfort" in wage dynamics but inflation is a concern
• Changes to communication generally seen as premature
• Relative importance of guidance on rates will increase as inflation rises
• Warranted to transition gradually to a broader forward guidance comprising various dimensions of policy stance
• Could consider gradual shift in guidance from early 2018
• Further easing of financial conditions not regarded as warranted
• Increased confidence that inflation pressures would take hold
• Broad agreement among council that current monetary policy stance is appropriate
• A few council members repeated their reservations about Oct decision
• ECB Chief Econ Praedt said to see increased relative importance of forward guidance on rates as part of policy package
• Wide agreement on no change of sequencing if economy, inflation continue to grow
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