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Account of the monetary policy meeting of the Governing Council of the European Central Bank held in Ljubljana on Wednesday and Thursday, 16-17 October 2024
14 November 2024
1. Review of financial, economic and monetary developments and policy options
Financial market developments
Ms Schnabel noted that since the Governing Council’s previous monetary policy meeting on 11-12 September 2024, policy rate expectations had shifted back and forth. Incoming data had made it challenging for market participants to price in the speed and extent of both disinflation and the monetary policy easing cycle. The key drivers of financial market developments since the September meeting had been a sluggish euro area economy, a robust US economy and rising and volatile commodity prices.
The combination of weaker euro area macroeconomic data and higher commodity prices had affected the market’s view of the inflation outlook and the perceived balance of risks to inflation. Inflation fixings (swap…