November 14, 2024 at 12:40PM
Disinflationary process is well on track
Inflation had turned out lower than expected in September
Upside risks to inflation are also now seen as lower
Inflation would probably reach 2% target somewhat earlier
But still too early to declare victory in the fight against inflation
A few members initially expressed a view that they would have preferred to accrue more information and to wait until December
The closer rates are to neutral territory, the more cautious one would have to be that monetary policy itself did not become a factor in slowing down the pace of disinflation
Full accounts
One interesting line is that policymakers noted “acting now could provide insurance against downside risks of undershooting inflation target”. I guess that might not be something they should be too worried now. With Trump tariffs looming large, the outlook has changed considerably for the ECB. And that is a key risk to take into account when they enter into discussions in December.
This article was written by Justin Low at www.forexlive.com.
