ECB Minutes: Majority Bankers in Favour 50 bps
Key takeaways from the latest ECB meeting:
- A very large majority agreed to hike rates by 50 bps
- Bankers noted that credit had become more expensive
- Some bankers would have preferred that the interest rates not be raised until financial market worries had abated
- Monetary policy still had some work to do to drive inflation down
- If the CPI prognosis reflected in the March predictions is verified, EBC will have more leeway in altering the monetary stance
Basically, we do not see a reaction to the minutes. EURUSD reaches the 1.0980 zone and retreats from that level. There is basically nothing new in the Minutes. The earlier, stronger “hawkish claw” is missing. At the same time, it is simply a continuation of the earlier overtones.