ECB accounts reflect extreme inflation concerns

European Central Bank policymakers at their meeting last month appeared increasingly concerned that high inflation was on the rise and that the risk was large enough to warrant an increase in the flagged-by-flag rate, according to the accounts of the July 21 meeting. shown in.

The ECB last month raised interest rates by 50 basis points to zero as inflation fears mounted, with a surprisingly large hike guiding the central bank to a 25 basis-point move.

“Inflation pressures were judged to be intensifying,” the accounts released on Thursday showed. “The continued anchoring of inflation expectations depended on the Governing Council acting decisively on the deteriorating inflation outlook.”

The ECB is expected to increase further by 50 basis points next month, even as the risk of a recession is looming, as inflation is now in the double-digit region and gas shortages could push prices higher.