ECB minutes: Most policymakers agree to lower interest rates despite inflation fears

ECB meeting minutes showed most policymakers agreed to cut the three key interest rates by 25 basis points on June 6, nine months after they were held steady.

Some members felt that the data available since the last meeting did not increase their confidence that inflation will approach the 2% target by 2025, and they said that the risks to inflation expectations tend to the upside, due to geopolitical tensions.

Christine Lagarde, President of the European Central Bank, said last week that the bank needs more time to conclude that inflation is moving steadily towards its 2% target and that good economic developments indicate that lowering the interest rate is not urgent, according to CNB. bad”.

Some policymakers noted that decoupling from the path of US interest rates would increase inflationary pressures through exchange rate effects, however, all except Austrian Finance Minister Robert Holzmann agreed to lower the interest rate.

Members stressed that they remain determined to ensure that inflation returns sustainably to the 2% target in the medium term, and stressed that they will keep policy sufficiently restrictive for as long as necessary to achieve this target.