Minutes from the European Central Bank’s (ECB) July policy meeting showed on Thursday that the September meeting was widely seen as a good time to reassess the level of monetary policy tightening, Reuters reported.
Key points
“Headline inflation was expected to fluctuate around current levels for the remainder of the year.”
“Signals from various measures of underlying inflation remained mixed.”
“It was therefore becoming more difficult to determine whether or not the slower deceleration signalled a genuine stalling of the disinflation process.”
“Labor cost dynamics would remain a key concern.”
“It was reassuring to see that domestic cost pressures from high wage growth, including in the services sector, had been increasingly cushioned by unit profits.”
“The transmission of monetary policy was developing as expected.”
“Monetary policy would probably take longer to be transmitted to the services sector.”
“It was considered natural that the Governing Council’s policy response was cautious.”
“By the time of the September meeting, extensive new data would be available.”
Market reaction
This publication failed to trigger a noticeable reaction in the market. At the time of publication, EUR/USD was trading at 1.1133, losing 0.15% on the day.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
