In the Sept. 9-10 gathering, officials agreed to tighten policy again in response to the energy shock and discussed how precisely to set that move. Alongside weighing whether more action might be needed, they judged that any increase in borrowing costs at this stage would still fall short of restricting growth.
Minutes show the arguments that the policy statement smooths over. Market Briefs reads them free every weekday.
The account stated: "While it was noted that the response should remain proportionate, it was also pointed out that a deposit facility rate of 2.5% remained in the range of neutral interest rates estimated by staff," the ECB said. Looking ahead, policymakers plan to leave the deposit rate steady at their next gathering in three weeks, though some - among them Croatian Governing Council member Ante Zigman - expect a vigorous debate. For the year's last meeting, markets broadly anticipate one more hike following the actions taken in June and September.
Inflation closing in on 4% is propping up wagers on several more rate hikes just as investors dump the debt of France and other high-debt countries, reviving worries of another crisis roughly a decade after the last one. Earlier on Thursday, Chief Economist Philip Lane said it remains appropriate to take a "measured" approach to the energy shock stemming from the Iran war, as spillovers to the wider economy are still limited. For savers, borrowers, and anyone eyeing European assets, the path the ECB takes from here will ripple through loan costs, bond prices, and the euro in the months ahead.
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