The European Central Bank (ECB) considered adding more stimulus to its struggling economy at its last policy meeting and saw "potentially worrisome" downward revisions in consumer price growth.
According to the minutes of the meeting, released Thursday, the risk of growth-sapping deflation has increased since the ECB's projections in September and the central bank is anticipating that the inflation rate will take longer to move back to its 2 percent target.
"The impact of external factors and heightened uncertainty raised the possibility that the ECB's measures, despite their magnitude, might not be gaining sufficient traction in the present environment to achieve their ultimate objective in terms of inflation rates," the minutes stated.
"It was argued that, in such an environment, the risk of deflation remained relevant. Against this background, the view was put forward that a case could be made for considering reinforcing the ECB's accommodative monetary policy stance already at the current meeting and, in any case, to act sooner rather than later."