Nothing In April Meeting Account To Preclude July Hike

Main points from the April ECB meeting account released today (highlighted by our Policy team) are below. There was little market reaction, with nothing in the document running contrary to market and (seemingly) policymaker consensus building around an initial hike in July.

• Governing Council members agreed increases inflation had become a major concern for households and businesses, but were divided on whether medium-term inflation expectations were becoming de-anchored - and how soon to react.
• Some members pressed for an end to APP "as soon as possible," paving the way for rate hikes, while others argued that such an aggressive adjustment to the policy stance might lower growth while having little effect on near-term inflation.
• Some saw 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.
• A majority agreed decisions on the future of APP and rates could wait until the June meeting, with the possibility of deciding to end net asset purchases at the end of 2Q 2022.