Zürcher Nachrichten - ECB members divided over inflation response: minutes

EUR -
AED 3.989913
AFN 76.752673
ALL 100.284295
AMD 421.05009
ANG 1.956803
AOA 947.92877
ARS 1005.585015
AUD 1.640027
AWG 1.958026
AZN 1.849621
BAM 1.955104
BBD 2.192219
BDT 127.574579
BGN 1.953736
BHD 0.409431
BIF 3127.486496
BMD 1.086283
BND 1.46078
BOB 7.502329
BRL 6.069372
BSD 1.085813
BTN 90.890939
BWP 14.751748
BYN 3.553235
BYR 21291.151541
BZD 2.188621
CAD 1.494862
CDF 3075.267285
CHF 0.968388
CLF 0.037147
CLP 1025.00565
CNY 7.902279
CNH 7.919434
COP 4339.853631
CRC 575.195209
CUC 1.086283
CUP 28.786506
CVE 110.225755
CZK 25.361458
DJF 193.35116
DKK 7.461039
DOP 64.307104
DZD 146.203949
EGP 52.53288
ERN 16.294249
ETB 62.759155
FJD 2.441693
FKP 0.837047
GBP 0.84093
GEL 2.949306
GGP 0.837047
GHS 16.753035
GIP 0.837047
GMD 73.622859
GNF 9356.66867
GTQ 8.422001
GYD 227.159123
HKD 8.481037
HNL 26.887427
HRK 7.503991
HTG 143.318973
HUF 390.413997
IDR 17618.482214
ILS 3.932372
IMP 0.837047
INR 90.935757
IQD 1422.393574
IRR 45724.371164
ISK 149.711702
JEP 0.837047
JMD 169.609613
JOD 0.769847
JPY 169.715437
KES 144.203525
KGS 91.899516
KHR 4460.411924
KMF 491.814395
KPW 977.655298
KRW 1506.025405
KWD 0.332099
KYD 0.904778
KZT 514.49682
LAK 24054.435707
LBP 97230.082396
LKR 329.862556
LRD 211.724618
LSL 19.929604
LTL 3.207512
LVL 0.657082
LYD 5.248131
MAD 10.698691
MDL 19.261142
MGA 4925.246425
MKD 61.588072
MMK 3528.205596
MNT 3747.67756
MOP 8.731691
MRU 42.947709
MUR 50.588128
MVR 16.674504
MWK 1882.729677
MXN 19.535608
MYR 5.075096
MZN 69.413489
NAD 19.929604
NGN 1745.657202
NIO 39.965771
NOK 11.963694
NPR 145.425223
NZD 1.821126
OMR 0.418103
PAB 1.085713
PEN 4.079847
PGK 4.254485
PHP 63.546512
PKR 302.276578
PLN 4.277119
PYG 8216.074765
QAR 3.957091
RON 4.973328
RSD 117.081808
RUB 94.750608
RWF 1422.193645
SAR 4.074875
SBD 9.187354
SCR 14.766986
SDG 636.561705
SEK 11.67327
SGD 1.461871
SHP 0.837047
SLE 24.818642
SLL 22778.820421
SOS 620.479086
SRD 31.876962
STD 22483.86991
SVC 9.500617
SYP 2729.319635
SZL 19.925906
THB 39.34408
TJS 11.563383
TMT 3.812854
TND 3.374898
TOP 2.57737
TRY 35.768543
TTD 7.370376
TWD 35.639109
TZS 2922.101267
UAH 44.802948
UGX 4013.571016
USD 1.086283
UYU 43.944354
UZS 13673.131846
VEF 3935118.11102
VES 39.628339
VND 27553.574431
VUV 128.96576
WST 3.045513
XAF 655.723538
XAG 0.037385
XAU 0.000451
XCD 2.935735
XDR 0.818908
XOF 655.723538
XPF 119.331742
YER 271.95059
ZAR 20.017001
ZMK 9777.847131
ZMW 28.147978
ZWL 349.782761
  • CMSC

    -0.0400

    24.27

    -0.16%

  • RBGPF

    56.4100

    56.41

    +100%

  • RIO

    0.2100

    63.99

    +0.33%

  • BTI

    0.3200

    33.52

    +0.95%

  • CMSD

    0.0400

    24.49

    +0.16%

  • SCS

    0.3200

    13.86

    +2.31%

  • GSK

    0.0400

    39.39

    +0.1%

  • BP

    -0.0500

    35.33

    -0.14%

  • NGG

    0.3000

    62.09

    +0.48%

  • AZN

    0.4500

    79.16

    +0.57%

  • RYCEF

    0.0400

    5.69

    +0.7%

  • BCC

    3.1200

    133.96

    +2.33%

  • RELX

    0.6900

    45.7

    +1.51%

  • VOD

    0.0300

    9.07

    +0.33%

  • JRI

    0.1100

    12.53

    +0.88%

  • BCE

    -0.2300

    32.98

    -0.7%

ECB members divided over inflation response: minutes
ECB members divided over inflation response: minutes

ECB members divided over inflation response: minutes

European Central Bank policymakers disagreed last month on how to respond to runaway inflation and economic uncertainty caused by the Ukraine war, minutes from their meeting showed on Thursday.

Text size:

The revelation comes as markets are looking for signs that the ECB could soon announce the first interest rate hike in over a decade.

"A large number of members held the view that the current high level of inflation and its persistence called for immediate further steps towards monetary policy normalisation," the minutes read.

The ECB's governing council played it safe at the March meeting, agreeing to wind down monthly bond purchases at an accelerated pace in the second quarter, while keeping the end date of the stimulus scheme flexible.

An interest rate hike would follow "some time" after the end of the bond-buying scheme, it said.

But the minutes revealed that some governors wanted to go further to combat inflation, as the war in Ukraine further pushes up prices for energy, food and raw materials.

"Among those calling for action at the present meeting, some members preferred to set a firm end date for (bond) purchases during the summer," the text read.

"This could clear the way for a possible rate rise in the third quarter of this year in the light of the deterioration in the inflation outlook."

Other members meanwhile preferred a "wait-and-see approach" given the "exceptionally high uncertainty" created by Russia's invasion of Ukraine and Western sanctions against Moscow.

The minutes show that the ECB "has become more hawkish", said ING bank economist Carsten Brzeski, using a term describing those advocating for a tightening of monetary conditions.

- 'Doubts' -

The ECB has for years maintained an ultra-loose monetary policy, pushing interest rates to record lows and hoovering up billions of euros in bonds each months to keep credit flowing in the eurozone.

Like other central banks, it now faces the challenge of scaling back stimulus to stem inflation without hurting economic growth, a task made more complicated by the return of war to Europe.

ECB president Christine Lagarde warned last week that a prolonged Ukraine conflict would keep energy prices and the cost of living spiralling, blighting a post-Covid recovery.

Eurozone inflation jumped to a record high of 7.5 percent in March, well past the ECB's two-percent target.

The ECB expects inflation to come down to 1.9 percent by 2024 once the energy shock wears off, although the minutes reflected "doubts" about the forecast.

The US Federal Reserve last month announced its first interest rate rise since 2018, with further hikes expected.

O.Meier--NZN