ECB releases the account of its June monetary policy meeting

  • PEPP was proportionate to counter the serious risks to price stability
  • Asset purchases are an essential tool
  • There is now ample evident that asset purchases had proven to be effective
  • Ready to adjust full range of instruments if necessary
  • That includes TLTROs, interest rates, forward guidance
  • Full release

The ECB hammers home the point that QE and PEPP stimulus measures are proportionate to the conditions at the time, in another salvo at the German constitutional court ruling last month. But apart from that, there isn't much of anything new really from this.

Policymakers did warn that improved market sentiment shouldn't lead to complacency, in a bit of a word of caution for lawmakers to deliver on the EU fiscal response.

The euro remains pressured on the day, with EUR/USD keeping lower near 1.1200. Sellers remain in near-term control as the risk mood is still a bit more cautious, with also decent-sized expiries seen at the figure level rolling off later today.