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The accounts of the European Central Bank’s (ECB) February policy meeting revealed on Thursday that Governing Council members agreed that further increases in key rates are required for policy to enter restrictive territory, per Reuters.

Additional takeaways

“Policy rates were, at present, barely consistent with the range of estimates for the neutral rate.”

“The view was expressed that there continued to be value in frontloading rate hikes at the present stage.”

“Reservations were expressed on the proposed communication of an intention for the March meeting.”

“It was noted that the short-term momentum in core inflation had also started to decline somewhat.”

“Markets were now paying more attention to core inflation than to headline inflation to gauge underlying inflationary pressures.”

“Members agreed that there were no signs of a wage-price spiral.”

“Wage pressures were broadening.”

“A better than expected growth outlook would contribute to continued inflationary pressures.”

Market reaction

EUR/USD showed no immediate reaction to these comments and was last seen losing 0.4% on the day at 1.0622.