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ECB Warns Against Complacency on Depressed Prices, Euro Gain

  • ECB releases account of Sept. 9-10 Governing Council meeting
  • Officials argued in favor of keeping steady hand on policy
A Eurosystem monetary authority sign stands outside the European Central Bank (ECB) headquarters in Frankfurt, Germany, on Thursday, July 16, 2020. 
Photographer: Alex Kraus/Bloomberg
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European Central Bank officials agreed at their latest policy meeting to avoid any complacency in their battle against the recession, and to counter investors’ perception that the euro would inevitably strengthen.

The account of the Governing Council’s Sept. 9-10 meeting showed officials fretting that currency gains had offset some of their monetary stimulus, with a “material impact” on the outlook for consumer prices. Chief economist Philip Lane said inflation expectations were at “very depressed” levels and at risk of falling further.