The accounts of the European Central Bank's (ECB) March policy meeting showed on Thursday that inflation in the Eurozone is expected to continue its downward trend in the coming months.

Key takeaways

"There had been further progress on all three elements, which warranted increased confidence that inflation was on track to reach the ECB's target."

"More data and evidence were needed for the Governing Council to be sufficiently confident of this."

"A bumpy profile and a trough were expected after the summer."

"There were signs that wage growth was starting to moderate."

"Members expressed increased confidence that inflation was on track to decline sustainably to the 2% inflation target in a timely manner."

"Important not to be complacent, as the disinflationary process remained fragile."

"The case for considering rate cuts was strengthening."

Market reaction

This report failed to influence the euro's valuation in a noticeable way. At the time of press, EUR/USD was up 0.2% on the day at 1.0858.