The accounts of the European Central Bank's (ECB) July policy meeting showed that a "very large number" of Governing Council members agreed that it was appropriate to raise key rates by 50 basis points (bps), as reported by Reuters.

Additional takeaways

"Members agreed that it was appropriate to take further steps on the path of monetary policy normalisation."

"Medium-term inflation risks had also increased."

"Persistently high inflation posed an increasing risk of longer-term inflation expectations becoming unanchored."

"Members unanimously supported the TPI."

"A larger than expected increase, a 50 basis point interest rate hike provided more clarity for market participants."

"Decision to raise interest rates by 50 basis points at the present meeting should be regarded as frontloading the exit."

"The Governing Council was not changing its assessment regarding the terminal rate in the hiking cycle."

Market reaction

The EUR/USD pair showed no immediate reaction to this publication and was last seen rising 0.27% on the day at 0.9992.