ECB accounts: All members agreed to maintain interest rates at current levels

<figure data-media-><img src="https://images.forexlive.com/images/ECB_id_2cb20e63-da17-49ed-9fb8-542c420d9c7c_original.jpg" alt="ECB" wrapper-="wrapper-" data-src="https://images.forexlive.com/images/ECB_id_2cb20e63-da17-49ed-9fb8-542c420d9c7c_original.jpg" /></figure><ul><li>Members argued in favour of keeping the door open for a possible further rate hike</li><li>The view was held that all three elements of the reaction function were moving in the right direction</li><li>ECB should be ready for further rate hikes if necessary</li><li>It could be expected that, based on the current outlook, inflation return to 2% target by 2025</li><li>Members agreed to continue applying flexibility in reinvesting redemptions falling due via PEPP</li><li>Discussion of an early termination of PEPP reinvestments currently seen as premature</li><li>Most of the impact of past rate hikes had yet to materialise</li><li>It was generally assumed that the "last mile" of bringing inflation back to target was the most difficult</li><li><a href="https://www.ecb.europa.eu/press/accounts/2023/html/ecb.mg231123~40c9631bc7.en.html" target="_blank" rel="nofollow">Full accounts</a></li></ul><p>The language seems to indicate that they want to keep markets on their toes with regards to rate hikes but if things continue as they are, then the central bank is done with the tightening cycle already. That doesn't change what we already know with everything else going on at the moment.</p><p><br></p>

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