The ECB releases its monetary policy accounts of the 5-6 March meeting
It was argued that it was no longer possible to be confident that monetary policy was restrictive
It was suggested that the balance was increasingly shifting towards the transmission of rate cuts
Replacing “monetary policy remains restrictive” with “monetary policy is becoming meaningfully less restrictive” was widely seen as a reasonable compromise
Likely shocks on the horizon, including from escalating trade tensions, and uncertainty more generally, risked significantly weighing on growth
These factors could increase the risk of undershooting the inflation target in the medium-term
Recent appreciation of the euro and the decline in energy prices, together with the cooling labour market and well-anchored inflation expectations, mitigated concerns about upside risks to inflation more generally
It was argued that being prudent in the face of uncertainty did not necessarily equate to being gradual in adjusting the interest rate
