ECB Accounts: Members debated reducing bond purchases in June meeting

The European Central Bank (ECB) released the accounts of its June monetary policy meeting on Friday, with the key highlights found below, per Reuters.

Concerns voiced that sustained rise in rates could translate to tightening of broader financial conditions.

It was reiterated that preserving favourable financial conditions over the period of the pandemic remained essentials.

Members expressed broad agreement with Lane's proposal to reconfirm the 'very accommodative' monetary policy stance.

It seemed appropriate that the improved outlook should be reflected in the governing council's policy stance.

Financing conditions were assessed as being too fragile to allow for a meaningful reduction in the pace of PEPP purchases.

Concerns expressed that any change in net purchases not based on improvement in inflation outlook would lead to unwarranted tightening of financial conditions.

But it was also argued that, to provide same degree of accommodation, asset purchases should be scaled back somewhat.

Market reaction

EUR/USD held the higher ground above 1.1850 on the ECB minutes release. The spot was last seen changing hands at 1.1860, up 0.16% on the day.