In the December 11-12 monetary policy accounts, ECB said incoming data since October pointed to “continued weakness” in Eurozone growth dynamics, but there were “some initial signs of stabilisation”. Inflation development remained “subdued overall” while there were “some indications of a slight increase in measures of underlying inflation in line with previous expectations.”
Policy makers were confidence that current monetary policy would “provide the necessary monetary stimulus” to support stabilization of growth. “Perceptions of receding uncertainties” regarding US-China trade dispute also supported positive market sentiments and equity prices.
There was “broad agreement” on the need to carefully monitor incoming data and evolution of risks. Some members highlighted the need to be “attentive to the possible side effects” of current policy measures. But “confidence was expressed that policy rates had not yet reached the so-called reversal rate”.
