The June 7-8 meeting discussed the possibility of the ECB abandoning its long-standing vow to boost the 2.3 trillion euros bond buyback program.
Eventually they decided against it after concluding that economic recovery in the region was yet to yield higher inflation – ECB’s main policy objective. Euro zone inflation fell to 1.30% in June, quite some distance away from the bank’s stated target of just under 2.00%.
The prospect of the ECB cutting off easy money has been dominating the markets’ psyche since President Mario Draghi's recent hawkish comments, hurting equities and nudging bond yields higher.
The latest minutes further reinforced those fears. ECB policymakers will next meet on July 20. DAX September futures ended Thursday at 12340, just above a 10-week low.