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Interest rates in the euro area will remain at their current level as long as necessary to revive inflation and the guidance of the European Central Bank (ECB) should be considered as "indefinite ", concluded the authorities of the ECB in June. according to the minutes of his last meeting on Thursday.
The ECB told the markets that interest rates would remain stable "until the (boreal) summer" of 2019 at its meeting last month, when it also announced that Its $ 2.6 billion bond purchase program ($ 3.04 trillion) would probably end in December
. But the ECB authorities also felt that it was necessary to point out that rates would only increase if the bank's inflation target near 2%, according to the minutes.
"It was considered that the indefinite nature of the contingency component (of the guide) should be emphasized and that the rate of monetary policy should remain at its current level as long as it will be necessary to guarantee ( …) a lasting adjustment of the inflationary trajectory, "said the ECB.
Despite the warning, members of the ECB's monetary policy committee argued that the acceleration of inflation had been substantial and were confident that consumer price growth would continue to progress to achieve the goal of the entity.
June 14, the ECB authorities decided to start dismantling the program of purchase of obligations of the agency to end the process at the end of this year, satisfied with the Effect of monetary stimulus on inflation in the euro area. However, they also postponed expectations regarding the bank's first interest rate hike after the financial crisis, using relatively vague rhetoric that could include: r a monetary adjustment in one of the four meetings monetary policy planned for the second half of next year.
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