ECB Minutes: Inflation Far Too High, Likely To Stay Above Target For An Extended Period

ECB Minutes: Account of the monetary policy meeting of the Governing Council of the European Central Bank held in Frankfurt am Main on Wednesday and Thursday, 7-8 September 2022

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Key Points:

Inflation was far too high and was expected to remain above the governing council's target for an extended period of time.

A large number of members favoured raising the key ECB interest rates by 75 basis points.

Expectations for inflation remained stable, and wage growth remained moderate, with little evidence of second-round effects.

Over the entire projection horizon, the risks associated with the projected inflation path remained skewed to the upside.

The size of the upward revision in the staff inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term projection for 2024 was not deemed large enough to necessitate a more aggressive response.

The expected slowdown in economic activity would not be sufficient to significantly reduce inflation.

Without a timely reduction in monetary policy accommodation, inflationary pressures caused by euro depreciation may worsen.