• The meeting decision
  • Most members indicated that they would accept the proposed 25 bps rate hike
  • Almost all members supported the 25 bps rate hike
  • ECB communication should, however, convey a clear "directional bias"
  • There was a strong preference against returning to outright forward guidance
  • There was now more solid evidence that monetary policy was being transmitted to financing and credit conditions
  • But it was also argued that transmission could be weaker than usual
  • Full accounts

With regards to inflation, the view on the trend in core prices was "broadly seen as worrisome". I guess that supports the argument for those wanting a 50 bps rate hike, although it will be interesting to see how this week's inflation data factors into the view among policymakers at the moment.