European Central Bank policymakers agreed in their meeting late January that it was premature to discuss interest rate cuts now which could derail the return of inflation to the 2 percent target, minutes of the policy session held on January 24-25 showed Thursday.
"The risk of cutting policy rates too early was still seen as outweighing that of cutting rates too late," the minutes, which the ECB calls "account" showed.
"Having to reverse course, in the event that economic activity picked up more strongly than expected, wage growth accelerated or renewed inflationary pressures emerged, could entail high reputational costs."
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by Jyotsna V
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