MNI BRIEF: Dissent To June ECB Cut Highlights Inflation Risks - Accounts

MNI (LONDON) - Most members of the ECB's Governing Council adopted the proposal to cut rates by 25 basis points in June, accounts of the meeting showed, although there was some dissent, with a suggestion that a truly data-dependent approach to policy setting would see rates left on hold. 

At the meeting, the ECB cut all three main rates by 25bp, with the benchmark deposit rate cut to 3.75%. (See MNI SOURCES: Even ECB Hawks Confident Inflation On Track)

A dissenting view suggested incoming data since the last meeting and upside risks to inflation did not support the case for a rate cut. In particular, recent data showed stickiness in inflation, and this stickiness could be exacerbated by several different geopolitical risks. (See MNI INTERVIEW: Cut Not Guaranteed In September - ECB's Muller)