- Members considered that there were both upside and downside risks to the inflation outlook
- It was argued that market participants would be surprised by the upward revision of inflation
- This could trigger a repricing of the forward curve
- Members broadly concurred that inflation was still projected to remain too high for too long
- It was argued that policymakers should not put too much emphasis on the behaviour of core inflation, as its mandate related to headline inflation
- Maintaining a gradual tightening path would allow the ECB to monitor and assess the impact of past monetary policy decisions and ensure that financial conditions were adjusting in a way that was consistent with inflation moving back to the 2% medium-term target
- Members generally agreed that the data-dependent approach to monetary policymaking
- Policymakers should stress that fiscal policy needed to be tightened in order to dampen demand and support the disinflation process
- Full accounts
There isn't anything that we don't already know from the ECB but it just reaffirms that policymakers are sticking to what was discussed so as to not give anything away for September just yet. We'll see after July if and how that will change.
