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MNI BRIEF: October Cut Seen As Insurance -ECB Accounts

ECB officials were concerned about possibly undershooting the inflation target, accounts show.

MNI (ROME) - European Central Bank Governing Council members argued that October’s rate cut could “provide insurance against downside risks that could lead to an undershooting of the target further,” monetary policy accounts from the meeting showed on Thursday.

A few members initially expressed a view that they would have preferred to wait for more information until December but in general it was considered that “the risks from cutting at the present meeting and potentially being too early were lower than the risks of waiting and potentially acting too late”, the accounts showed.

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MNI (ROME) - European Central Bank Governing Council members argued that October’s rate cut could “provide insurance against downside risks that could lead to an undershooting of the target further,” monetary policy accounts from the meeting showed on Thursday.

A few members initially expressed a view that they would have preferred to wait for more information until December but in general it was considered that “the risks from cutting at the present meeting and potentially being too early were lower than the risks of waiting and potentially acting too late”, the accounts showed.

Keep reading...Show less