ECB Meeting Accounts: Need to revise forward guidance on rates was emphasized

The European Central Bank's July Monetary Policy Meeting Accounts revealed on Thursday that policymakers emphasized the need to revise the forward guidance on interest rates.

Additional takeaways as summarized by Reuters

"The reformulated forward guidance was best understood as a set of conditions that would help guide the ECB's actions in pursuit of its inflation target."

"Guidance did not necessarily imply “lower for longer” interest rates."

"It was remarked that forward guidance on interest rates, if credible, should reduce the extent to which other instruments needed to be deployed."

"Reflecting the balance of the arguments, overwhelming support emerged around an amended version of the forward guidance proposal by Mr Lane."

Market reaction

The EUR/USD pair's reaction to the ECB's publication was largely muted. As of writing, the pair was trading at 1.1772, where it was virtually unchanged on a daily basis.