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European Central Bank policymakers stressed on the need to remain vigilant against inflation risks though they were increasingly more confident that the rate would be brought to the 2 percent target by 2025, minutes of the December 13-14 policy session showed Wednesday. "...there were different views as to whether there were grounds for sufficient confidence that the target would be reached in a timely manner," the minutes of the Governing Council meeting, which the ECB calls the "account", said.
"Hence a need was seen for continued vigilance and patience, and for the maintenance of a restrictive stance for some time."
Policymakers highlighted that there was no room for complacency and they agreed that it was not the time for the Governing Council to lower its guard. They stressed on the need for caution as inflation is likely to pick up in the near term. Further, there were continued uncertainties in relation to wages and underlying inflation dynamics, the minutes said.
"This suggested that it was still too early to be confident that the task had been accomplished," the minutes said.
In December, the ECB left its key interest unchanged for a second straight session and the bank lowered its inflation projections.
