ECB Meeting Accounts: Economic situation seen to be deteriorating rapidly

The likely deterioration in the outlook for economic activity and inflation and the accompanying drop in inflation expectations could lead to an increase in real interest rates, the accounts of the ECB's March emergency meeting showed on Thursday.

Key takeaways

"Financial conditions worsening running the risk that financial conditions would tighten in a procyclical manner."

"The economic situation was seen to be deteriorating rapidly."

"Notwithstanding the hesitation, readiness was also expressed to go along with the carefully phrased communication."

"Reservations were, however, expressed by some members with regard to the proposed communication on the issue share and issuer limits."

"All members agreed that a further forceful monetary policy response was warranted."