ECB April Meeting Accounts Show Close Call on Rates
The European Central Bank's April accounts reveal that several policymakers considered a rate hike as inflation reached 3 percent. Officials signaled a likely policy move in June while monitoring energy price shocks and potential second-round effects on the broader economy.
The European Central Bank (ECB) held interest rates steady in April, though meeting accounts reveal several policymakers viewed the decision as a close call. Inflation reached 3% last month as energy-driven price shocks persist. The shift in tone makes a policy tightening in June highly probable as officials abandon their previous "looking through" approach to energy prices.
### Inflation Risks Intensify Beyond Energy ECB accounts from the April 29-30 meeting show that a number of members would have supported a rate hike had it been formally proposed. Policymakers noted that the "option value" of waiting has diminished, as energy-driven price shocks increasingly threaten to seep into the broader economy. While the bank found no evidence of second-round effects in April, officials signaled they are ready to act to prevent market complacency.
