MNI BRIEF: Wide Agreement For ECB Policy Guide Need: Accounts

There was 'wide agreement' amongst Governing Council members that the European Central Bank should signal a recalibration of monetary policy tools at the next meeting, according to the accounts of the October 28-29 meeting, published Thursday. However, there were cautious reminders from some members that the GC should not pre-commit itself to specific policy action.

Council members 'widely agreed' with proposals by Chief Economist Philip Lane, suggesting a need to signal that the ECB 'stood ready to act with all the flexibility that was embodied in its pandemic emergency monetary policy tools, while also stressing its determination to act and signaling its willingness to adjust all instruments, if needed'

It was stressed that any sign of complacency – even inadvertent – 'could be detrimental in the present circumstances'.