Some ECB policymakers wanted to include APP in guidance – Reuters

Citing four sources familiar with the matter, Reuters reported on Thursday that two European Central Bank policymakers, Jens Weidmann and Pierre Wunsch, held out against the new guidance and several more voiced some objections.

According to the sources, those opposing the ECB’s new guidance objected to the length of commitment and noted the lack of clarity. 

“Some ECB policymakers wanted to include asset purchase programme in guidance, aim for “at least” 2% inflation not just 2%,” sources further noted and added that they held a lengthy discussion on whether inflation overshoot would be intentional or incidental.

Market reaction

The EUR/USD pair, which climbed to a daily high of 1.1831 earlier in the day, remains on the back foot in the American session and was last seen losing 0.2% on the day at 1.1768.