An unspecified number of European Central Bank policymakers at the June meeting were initially in favor of a 50 basis point interest rate hike due to fears of persistently high inflation, but a "very broad consensus" finally went for a 0.25 percentage point increase to the three key interest rates, the account of the June 14-15 meeting showed on Thursday.
"Emphasis was put on the merit of sticking to a data-dependent, meeting-by-meeting approach in an uncertain environment, particularly as rates were moving closer to a possible peak level," according to the summary. Unnamed ECB officials noted that although the central bank should prepare for more rate hikes, it should also get ready for a halt if needed.
"It was also felt [at the meeting] that the [ECB] Governing Council should stress that fiscal policy needed to be tightened in order to dampen demand and support the disinflation process," the review also showed.
