- ECB's October meeting accounts: Incoming economic data raised question as to whether weakness would continue for longer than anticipated during September meeting
Market news
21 November 2019
ECB's October meeting accounts: Incoming economic data raised question as to whether weakness would continue for longer than anticipated during September meeting
- Strong call was made for unity of the Governing Council at the latest meeting
- Open and frank discussions necessary but it is important to and to unite behind the Governing Council’s commitment to pursuing its inflation aim
- There was wide agreement that more information would be needed to reassess the inflation outlook and the impact of the monetary policy measures, particularly given that some of the measures had yet to be implemented – notably the resumption of net asset purchases and the introduction of a two-tier system for reserve remuneration
- Incoming data suggested that the weakness was likely to persist and raised the question as to whether it would continue for longer than had been anticipated in the September 2019 ECB staff projections
- The measures should be allowed more time to fully unfold their effects on the euro area economy and ultimately on inflation outcomes, taking into account the usual transmission lags of monetary policy
- A plea was made for patience to allow the measures taken in September to work through the economy, supporting a “wait and see” posture at the current juncture
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