ECB accounts affirm importance of restating data-dependent approach in communication

<ul><li>The fall in inflation was encouraging and had been broad-based</li><li>No room for complacency and now is not the time to lower the guard</li><li>Caution was warranted, as inflation would probably pick up in the near-term</li><li>Too early to be confident that inflation battle has been won</li><li>A need was seen for continued vigilance and patience, and for the maintenance of a restrictive stance for some time</li><li>Restating data-dependent approach was seen to be important</li><li>Members expressed increased confidence that inflation would be brought back towards the 2% target in 2025</li><li><a href="https://www.ecb.europa.eu/press/accounts/2024/html/ecb.mg240118~57d24ff18f.en.html" target="_blank" rel="nofollow">Full accounts</a></li></ul><p>The above commentary isn't anything new and just reaffirms the central bank's current stance. There wasn't much of anything to speculate about the timing of a rate cut, so that doesn't add much colour to the current picture on the rates outlook.</p>

This article was written by Justin Low at www.forexlive.com.