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ECB minutes: policy response should remain ‘measured’

The European Central Bank’s meeting minutes said policy responses should stay “measured,” noting the 2.50% deposit facility rate remains within staff estimates of the neutral range. The minutes stressed that avoiding any guidance on the future rate path is especially important, calling it wise to acknowledge only high uncertainty, while maintaining continued vigilance as risks do not all point in the same direction.

Original source

AI take

The signal here is about communication rather than calibration: the ECB is explicitly reserving the right to stay data-dependent while declining to define what would change its stance. That matters for euro-denominated risk assets, including tokenized treasury and money-market products that price off the euro short rate, because the forward curve now carries more of the easing-or-holding question than the central bank is willing to endorse. Whether the deposit rate is genuinely judged neutral, or merely within a wide staff range, is the open question worth watching.

Generated by AI for reference only.

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