ECB: Large number of members viewed current inflation developments call for urgent steps

• Monetary policy stance remained very accommodative
• Large number of members held the view that current level of high inflation called for immediate further steps towards policy normalisation
• It was argued, that for all practical purposes, three forward guidance conditions have been met
• A longer period of above-target inflation would lead to increased risk on upward de-anchoring
• In such a circumstance, ECB could no longer afford to look through higher inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term
• The view was taken that APP purchases had by now fulfilled its stated objective
• Nonetheless, it is seen as wise to keep some two-sided optionality on policy
• Full account

There are some hawkish mumblings based on the remarks above but recent ECB commentary does not suggest that policymakers are too keen to push the agenda. So, that is making things a bit confusing in my view. I wouldn't say a lot has happened over the course of the past four weeks but it certainly has perhaps.

If the ECB thought that rate hikes could do them some good, they definitely do not share as strongly a view on that now.