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.”
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