The European Central Bank (ECB) officials justified their latest interest rate hike as a ‘proportionate’ step to address inflation, while ensuring it wouldn’t stifle economic growth. According to a summary of their September 9-10 meeting, policymakers carefully balanced the need for further action against the potential impact on borrowing costs.
The meeting, where the ECB tightened policy for the second time in response to an energy shock, highlighted the focus on calibrating the right move. Officials weighed the necessity of combating inflation without overburdening the economy.
The account of the discussions emphasized that any increase in borrowing costs was still considered manageable and would not restrict growth significantly. This reflects the ECB’s cautious approach to monetary policy adjustments.