The accounts of the European Central Bank's (ECB) October policy meeting revealed on Thursday that a few members of the Governing Council expressed a preference for increasing the policy rate by 50 basis points (bps) rather than 75, per Reuters.

Additional takeaways

"The view was widely shared that the inflation outlook continued to worsen."

"These developments indicated an increasing risk that inflation might become entrenched."

"ECB now needed to show equal determination when inflation was above the target, countering far too high inflation and preventing it from becoming entrenched, irrespective of a deteriorating outlook."

"Wage growth was accelerating, it could still be considered moderate."

"Weakening in economic activity would not suffice to curb inflation to a significant extent."

"Governing Council should continue normalising and tightening monetary policy, whereas it might want to pause if there was a prolonged and deep recession."

"Although wage growth was accelerating, it could still be considered moderate."

"75 basis points hike was supported by a very large majority."

"It was noted that market participants were pricing in an increase of this size."

Market reaction

The ECB's publication failed to trigger a noticeable market reaction and EUR/USD was last seen trading sideways at around 1.0400.