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ECB minutes show controversial debate on real disinflationary trend
Remember that while the rate cut decision in October made sense, it deviated from the usual emphasis on data dependency, shifting instead towards reliance on data point dependency and gut feeling. It looks as if a month of weaker sentiment indicators and a bigger-than-expected drop in headline inflation created a queasy gut feeling in many ECB members. The fear of falling behind the curve for the third time in three years seemed to have triggered a shift towards stepping up the rate-cut efforts. The minutes from today indicate that, despite some scepticism within the ECB about the persistence of the disinflationary ... (full story)