empty
 
 

2018.08.2310:00:00UTC+00ECB Minutes Say Risks Broadly Balanced, Threat Of Protectionism Prominent

Eurozone growth continued to be solid and broad-based, though threats such as protectionism remained prominent, the European Central Bank said in the minutes of its latest policy meeting. "Uncertainties related to global factors remained prominent, in particular with regard to the threat of protectionism and the risk of an escalation of trade tensions," the minutes, which the ECB calls "account", of the July 25-26 meeting showed on Thursday.

"These tensions could generate a more general decline in confidence throughout the global economy, beyond any direct effects from the imposition of tariffs."

Policymakers also expressed concerns about the implications for emerging market economies and the recent depreciation of their currencies.

"The risk of persistent heightened financial market volatility also continued to warrant monitoring," the minutes said. ECB policymakers noted that uncertainties surrounding the inflation outlook had been receding.

They also agreed that significant monetary policy stimulus was considered to be still needed to support the further build-up of domestic price pressures and headline inflation over the medium term.

"It was widely felt that monetary policy had to remain patient, prudent and persistent," the minutes said.

"It was considered essential to retain sufficient flexibility and optionality for monetary policy in the period ahead, and the importance of data dependency in determining the Governing Council's monetary policy stance was stressed."

After the July meeting, the ECB Governing Council maintained its interest rates, asset purchases and forward guidance.

In June, the ECB announced that it hopes to halve its monthly bond purchases to EUR 15 billion after September and to end them in December.

Elsewhere on Thursday, ECB policymaker and Bundesbank President Jens Weidmann said it was now time for the ECB to start exiting its ultra-easy monetary policy and the non-standard measures, as euro area inflation is currently consistent with the target. Weidmann warned against any undue delay in normalizing policy

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS


Can't speak right now?
Ask your question in the chat.
Widget callback