ECB’s September minutes reveal full support for 25bp rate hike - ING THINK Economic and financial analysis | ING THINK

The just-released minutes of the ECB’s September meeting confirm that the decision to raise interest rates by 25bp was driven by a deteriorating inflation outlook By the time the ECB met in September, a 25bp rate hike had already come to be seen as the most likely outcome. The just-released minutes of that meeting show that the ECB’s Governing Council was united in its view that a worsening inflation outlook and economic resilience called for a hike. The minutes, however, give a less hawkish picture than ECB president Christine Lagarde’s comments at the press conference. Worsened inflation forecast the reason for the rate hike. The updated staff projections indicated that inflation was set to remain well above target for an extended period.