Accounts from the ECB’s April meeting show divisions as some members considered raising rates amid persistent inflation risks.
The European Central Bank’s April meeting accounts revealed that some policymakers would not have opposed a rate hike, citing intensified upside risks to inflation and persistent energy price shocks. The minutes noted that weakness in growth could extend beyond the conflict’s end, while second-round inflation effects remained limited but under watch.
Policymakers described the current environment as a negative supply shock, distinct from 2022, with energy price pressures becoming more entrenched. The decision to hold rates was called a close call, with concerns about inflation expectations becoming unanchored. More data on the energy shock’s impact is expected by June.
EUR/USD showed no immediate reaction, trading slightly above 1.1600 and down 0.12% on the day.