The European Central Bank (ECB) policymakers wanted explicit acknowledgment of upside risks to inflation in the policy meeting last week but were rebuffed by Chief Economist Phillip Lane, Reuters reports, citing sources close to the debate.

Additional takeaways

"Quite a few wanted to acknowledge the upside risks but Philip (Lane) pushed back hard.”

"After a lengthy debate we appeared to agree on a 'small upside risks', but even that was nowhere to be found in the statement."

The closest ECB President Christine Lagarde came to such an acknowledgment was when she said "there is possibly an upside risk" in response to a reporter's question.

"The statement didn't quite give back the flavor of our debate."

“Several people questioned the quality of the ECB's forecasts, which have been subject to large revisions for years.”

Market reaction

EUR/USD has quickly pulled back from daily highs of 1.1274, now trading at 1.1263, up 0.22% so far.