ECB Keen to Keep Stimulus Hopes in Check at Meeting After Brexit Vote

European Central Bank rate setters agreed not to discuss any policy change at their July meeting and to keep market hopes for more stimulus in check, despite rising risks linked to Britain’s vote to leave the European Union, minutes showed on Thursday.

The accounts of the meeting suggested the ECB’s Governing Council, which will meet again on Sept. 7-8 and examine new inflation forecasts, was in no rush to act, taking comfort from a calmer-than-expected market reaction to the Brexit vote even though risks had “clearly increased”.

“It was widely felt among members that it was premature to discuss any possible monetary policy reaction at this stage,” the ECB said. “More time was needed to assess the incoming information over the coming months, although downside risks had clearly increased.”

Reuters

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Craig Erlam

Craig Erlam

Senior Market Analyst - UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a Market Analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam