The European Central Bank's September Monetary Policy Meeting Accounts revealed on Thursday policymakers think that the accommodative monetary policy stance remains necessary.
Additional takeaways as summarized by Reuters
"It was suggested that more information be provided in official communication about the reasoning behind the APP, the PEPP and related policy decisions."
"All members agreed that, in line with the framework adopted in December 2020, persistently favourable financing conditions along with a somewhat improved medium-term outlook for inflation would allow the governing council to moderately scale down the pace of purchases under the PEPP in the last few months of the year."
"As for the assessment of the inflation outlook, a significant improvement over the course of the year was acknowledged."
"It was reiterated that the PEPP was designed as an emergency programme that had a clearly defined objective of countering the impact of the pandemic."
"Near-term increase in inflation was largely driven by temporary factors that would fade in the medium term and not call for policy tightening."
"Point was made that, even without the PEPP, the overall monetary policy stance remained highly accommodative."
"A view was expressed, however, that the perception of premature removal of accommodation could raise questions on the governing council’s determination to deliver on its inflation target."
"A number of comments were made in both directions on the recalibration of the pace of purchases under the PEPP."
"A concern was expressed that a slower pace might induce market perceptions of a tighter than expected monetary policy."
"Argument was made that markets were already expecting an end to net asset purchases under the PEPP by March 2022."
Market reaction
This publication doesn't seem to be having a significant impact on the shared currency's performance against its rivals. As of writing, the EUR/USD pair was up 0.12% on the day at 1.1570.
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