ECB Meeting Accounts: Recent positive developments not fully backed by economic data

The European Central Bank's (ECB) Governing Council noted that the calmness of financial markets was considered to rest on the expected continuation of the supportive policy measures, the accounts of the ECB's July meeting showed on Thursday.

Key takeaways as summarized by Reuters

"The argument was also made that the flexibility of the PEPP suggested that the net purchase envelope should be considered a ceiling rather than a target."

"The point was made that incoming data had surprised on the upside and some of the downside risks surrounding the outlook had receded."

"Under the baseline scenario, the current presumption was that the PEPP envelope would have to be used in full."

"With regard to the PEPP, the flexibility of the programme was highlighted."

"It was also cautioned that the recent positive market developments were not fully backed by economic data."

Market reaction

The EUR/USD pair edged slightly higher and was last seen gaining 0.08% on a daily basis at 1.1845.