ECB minutes confirm more balanced inflation assessment – ING

Analysts at ING offer their take on the European Central Bank’s (ECB)  September Monetary Policy Meeting Minutes Accounts released earlier this Thursday.

Key quotes

“The just released minutes of the ECB’s September meeting, in our view, gave some interesting insights into the Bank’s gradually changing inflation assessment and the discussion on the downsizing of asset purchases under the Pandemic Emergency Purchase Programme (PEPP).”

“Regarding the inflation assessment, the tone has clearly changed from a very benign approach in the summer to a more balanced view. n fact, it was acknowledged that both headline and core inflation had surprised to the upside compared with recent ECB projections.”

“Regarding the monthly PEPP purchases, there had been calls for both a more substantial reduction and a more prudent reduction. Arguments in favour of a more substantial reduction were based on improved financing conditions and an improved economic outlook, while arguments in favour of a more prudent reduction were that the impression of tapering should be avoided.”