Economic Buzz: ECB monetary policy minutes say central bank to ensure sustainable inflation stability

European Central Bank announced minutes of its latest monetary policy meeting today. The ECB Governing Council had opined in the meeting that it would set monetary policy as appropriate to ensure that inflation stabilised sustainably at the medium-term target. It would continue to monitor closely the size and persistence of the energy price increase and how it was feeding through to price and wage-setting, inflation expectations and overall economic dynamics. Over the coming months, it would be particularly important to gauge the strength of indirect effects and watch out carefully for second-round effects, as these dynamics could make the direct inflationary impact of the energy shock more persistent. In the meeting, all members supported the proposal made by Mr Lane to raise the three key ECB interest rates by 25 basis points. This decision underscored the Governing Council?s commitment to setting monetary policy to ensure that inflation stabilised at the 2% target in the medium term.

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