Downside risks to the euro area growth and inflation outlook have increased and it was likely that the 2 percent inflation target will be achieved only later than expected earlier, European Central Bank said in its minutes of the October 22 meeting, released Thursday.
"A mechanical update by ECB staff of their September projections with market data...suggested that there were downside risks to the September baseline scenario, notably as regards the inflation outlook," the minutes, which the ECB calls "the account" showed.
"As a result, the anticipated timing of inflation normalising towards 2% was likely to be pushed back again, as had already been the case in previous staff projections."
Policymakers also decided to re-examine the degree of policy stimulus at the December 3 Governing Council meeting, when new projections will be available, the minutes said.
For comments and feedback: editorial@rttnews.com