• The meeting decision
• Most members indicated that they would accept the proposed 25 bps rate hike
• Almost all members supported the 25 bps rate hike
• ECB communication should, however, convey a clear „directional bias“
• There was a strong preference against returning to outright forward guidance
• There was now more solid evidence that monetary policy was being transmitted to financing and credit conditions
• But it was also argued that transmission could be weaker than usual
• Full accounts

With regards to inflation, the view on the trend in core prices was „broadly seen as worrisome“. I guess that supports the argument for those wanting a 50 bps rate hike, although it will be interesting to see how this week’s inflation data factors into the view among policymakers at the moment.

This article was written by Justin Low at www.forexlive.com.