According to Reuters, the European Central Bank (ECB) revealed the results of its June monetary policy meeting on Friday, with the highlights listed below.
Concerns have been expressed that a persistent increase in rates could lead to a tightening of broader financial conditions.
It was stressed that maintaining favorable financial conditions during the pandemic time was critical.
Members overwhelmingly supported Lane’s recommendation to maintain the’very accommodating’ monetary policy stance.
The improved prognosis felt reasonable to express in the policy position of the governing council.
The financial situation was deemed too precarious to allow for a significant slowdown in the pace of PEPP purchases.
Concerns have been made that any adjustment in net purchases that is not based on an improved inflation outlook will result in an unjustified tightening of financial conditions.
However, it was also suggested that asset acquisitions be dialed back to give the same level of accommodation./n
