The accounts of the European Central Bank's (ECB) January policy meeting showed on Thursday that there was a broad consensus among Governing Council members that it was premature to discuss rate cuts, per Reuters.

Key takeaways

"Latest developments in economic activity and inflation as being consistent with the current monetary policy stance.""

"There had been further progress on all three elements of the reaction function.

"Confident that monetary policy was working."

"It was affirmed that further progress needed to be made in the disinflationary process."

"Broad consensus among members that it was premature to discuss rate cuts."

"Measures of underlying inflation had passed their peak."

"Risk of cutting policy rates too early was still seen as outweighing that of cutting rates too late."

"There was solid evidence that monetary policy was being transmitted to financial markets, financing conditions and credit conditions."

"Uncertainty remained about the timing of the peak impact."

"Members signalled that continuity, caution and patience were still needed."

"The risks to reaching the inflation target were seen as broadly balanced or at least becoming more even."

"Financial market loosening might be premature and could possibly derail or delay a timely return of inflation to target."

Market reaction

This publication failed to trigger a noticeable reaction in the EUR/USD pair, which was last seen rising 0.25% on the day at 1.0845.