The accounts of the European Central Bank's (ECB) September policy meeting revealed on Thursday that some members of the Governing Council expressed a preference for maintaining key rates at current levels, per Reuters.

Key takeaways

"Solid majority of members expressed support for the 25 basis point rate increase."

"Emphasis was also placed on the upward revisions to the headline inflation projections for the first two years."

"Pause could give rise to speculation that the tightening cycle was over."

"Not hiking could also send a signal of the governing council being more concerned about the economy and a potential recession than too high inflation."

"Having been able to keep inflation expectations anchored, despite the long period in which inflation had been above target, was seen as a major achievement."

"Deposit facility rate in the region of 3.75% to 4.00%, as long as it was understood as being maintained for a sufficiently long duration, should be consistent with a return of inflation to target."

"Decision between raising rates and pausing was a close call, and that tactical considerations also played a role."

"A range of model-based simulations suggested that a deposit facility rate in the region of 3.75% to 4.00% should be consistent with a return of inflation to target."

Market reaction

EUR/USD largely ignore this publication and was last seen trading flat on the day slightly above 1.0600.