Free Trial

MNI BRIEF: Rate Rise Pace Split ECB GovCo, April Account Shows

(MNI) London

Governing Council members at the European Central Bank widely agreed that increases in both headline and core inflation had become a major concern for households and businesses, but divided on whether medium-term inflation expectations were becoming de-anchored and how soon to react, the official Account of April’s ’s meeting shows.

Some pressed for an end to APP “as soon as possible,” paving the way for rate hike, while others argued that such an aggressive adjustment to the policy stance might lower growth while having little effect on near-term inflation.

Council members also disagreed on the pace of normalisation implied by the ECB’s previously stated commitment to gradualism, with some viewing a swift adjustment of the monetary policy stance towards a neutral position as necessary, while others argued that no such reappraisal of the monetary policy path was required (see MNI SOURCES 1: ECB Seen Making Two To Three 25-BP Hikes In 2022), although a majority agreed decisions on the future of APP and rates could be deferred until the June meeting, with the possibility of deciding to end net asset purchases already at the end of the second quarter or early in Q3.

MNI London Bureau | +44 20 3983 7894 |
MNI London Bureau | +44 20 3983 7894 |

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.