ECB Accounts: Inflation expected to hover close to target of 2% for remainder of year

The accounts of the European Central Bank’s (ECB) April policy meeting showed on Thursday that policymakers had increased confidence that inflation would return to target in line with the March baseline projections.

Key takeaways

“Uncertainty, the appreciation of the Euro and the decline in oil and gas prices, would further dampen the inflation outlook in the near term.”

“Over the medium term, the picture for inflation remained more mixed.”

“Wage growth had been slowing further – slightly faster than expected.”

“Credit growth increasing somewhat more strongly than had previously been expected.”

“Market-based indicators pointed to a tightening of financial conditions.”

“Inflation was expected to hover close to the inflation target of 2% for the remainder of the year.”

Market reaction

This publication failed to trigger a noticeable reaction in EUR/USD. At the time of press, the pair was down 0.23% on the day at 1.1305.