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