ECB - European Central Bank
ECB - European Central Bank
Aug 16
ECB Minutes (Thu):
As expected, the ECB opted to stand pat on rates following the 25bps reduction in June. In the accompanying policy statement, the Governing Council reaffirmed that it would keep policy rates sufficiently restrictive for as long as necessary to achieve its goals. Furthermore, policymakers will continue to maintain a data dependent approach and not pre-commit to a specific policy path. At the follow-up press conference, President Lagarde noted that the discussion on the Governing Council was very much a case of "on the one hand" and "on the other hand", with the ultimate policy decision being a unanimous one. Lagarde was also keen to stress that the ECB is data dependent but not specific data point dependent. Regarding the path ahead, Lagarde kept her cards close to her chest, suggesting that the September meeting is "wide open". Given how neutral the meeting was and the amount of data due between July and September, it is unlikely that the account will offer much in the way of guidance over what to expect next month. Instead, traders will be watching EZ data points and how these metrics are viewed by members on the Governing Council.