ECB Accounts: Members Debated Reducing Bond Purchases in June Meeting

The European Central Bank (ECB) released the accounts of its June monetary policy meeting on Friday, with the key highlights found below, per Reuters.

Concerns expressed that any change in net purchases not based on improvement in inflation outlook would lead to unwarranted tightening of financial conditions.

Financing conditions were assessed as being too fragile to allow for a meaningful reduction in the pace of PEPP purchases.

Members expressed broad agreement with Lane’s proposal to reconfirm the ‘very accommodative’ monetary policy stance.

It seemed appropriate that the improved outlook should be reflected in the governing council’s policy stance.

It was reiterated that preserving favorable financial conditions over the period of the pandemic remained essentials.