According to the minutes, all members supported the 25 basis point rate increase. Nevertheless, some members expressed a preference initially for not raising key ECB interest rates further, citing risks of stronger-than-anticipated transmission of rate hikes into the economy.
Interestingly, the account captured diverging views on the necessity for another rate hike in September. On one side, it was argued that if inflation did not decline as swiftly as expected, interest rates would need to be adjusted further to ensure a timely return to the 2% target.
On the other side, some members posited that the September ECB staff projections could potentially show a downward revision in the inflation path, making another rate hike in September unnecessary.