Accounts of ECB’s January 20-21 monetary policy meeting noted “members agreed that ample monetary stimulus remained essential to preserve favourable financing conditions over the pandemic period.” Very accommodative stance was “necessary to counter the downward impact of the pandemic on the projected path of inflation”. Favourable financing conditions needed to “prevail for some time”.
“Overall, it was widely felt that the recalibration of instruments decided on in December remained appropriate and well-balanced… Monetary policy should keep a steady hand and that the measures that were put in place in December should be given time to take full effect.”
Nevertheless, “members also widely agreed that there was no room for complacency and that the Governing Council had to continue to stand ready and use all of its instruments, as appropriate, to ensure a robust convergence of inflation towards its aim.”
