ECB's decision to hold rates was close call for some, accounts show

The ECB's decision to leave rates unchanged last month was a close call, with meeting accounts showing policymakers worried that persistently high inflation made it difficult to dismiss the energy-driven shock. The tone suggests a cautious, hawkish stance even though no policy change was made. The report is market-relevant because it reinforces expectations that rates may stay restrictive if inflation remains sticky.

Analysis

The ECB's decision to leave rates unchanged last month was a close call, with meeting accounts showing policymakers worried that persistently high inflation made it difficult to dismiss the energy-driven shock. The tone suggests a cautious, hawkish stance even though no policy change was made. The report is market-relevant because it reinforces expectations that rates may stay restrictive if inflation remains sticky.