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8/25/2022, 1:36 PM (Source: TeleTrader)
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Further normalisation of rates appropriate - ECB

The European Central Bank agreed that "at the Governing Council’s upcoming meetings, further normalisation of interest rates would be appropriate," it was revealed in the bank's minutes from the July meeting, posted on Thursday.

The central bank communicated that "upside risks to the inflation outlook had intensified" not only in the short-term but also in the medium-term as well. Thus, the vast majority of the members opted to support the 50-basis point increase in July. Meanwhile, the approval of the Transmission Protection Instrument (TPI) was unanimous.

"The frontloading of the exit from negative interest rates allowed the Governing Council to make a transition to a meeting-by-meeting approach to interest rate decisions," it was noted in the minutes. With regard to its future monetary policy steps, the bank will continue to be "data-dependent," as it hopes to "deliver on its 2% inflation target over the medium term."

Baha Breaking News (BBN) / AY