- A large number of policymakers initially expressed preference to raise rates by 75 bps
- Some argued that a less than 75 bps move would send a wrong message and risked being perceived as inconsistent in trying to bring inflation back down to 2% target
- A broad majority of policymakers supported proposal to raise rates by 50 bps
- A compromise was in some ways seen as broadly equivalent to raising by 75 bps
- The steadiness of rate hikes and period over which rates remained in restrictive territory mattered more
- Risks to inflation outlook remains primarily on the upside
- Full account
That's certainly interesting as the minutes reveal quite a hawkish undertone among members at the ECB. If anything else, I would say the "compromise" here is that they would instead choose to hike for a longer period by 50 bps - something that Lagarde was adamant in defending here. This justifies further the euro's resilience on the day, in my view.