ECB minutes showed that some members of the Governing Council consider that risks to economic outlook are on the downside and have increased since December. Minutes also revealed a point was made regarding preference to make a preemptively act to counter downside risks. “Incoming information had confirmed that the euro area economic recovery was continuing and there was good evidence that the monetary policy measures in place were working. However, downside risks had increased again since the beginning of the current year, amid heightened uncertainty about the growth prospects of emerging market economies, volatility in financial markets and geopolitical risks”, the minutes said. The minutes support ECB President Mario Draghi's recent statement that hinted at further policy easing at the March meeting, although they give no clues on what form these measures will take as they considered “premature” to discuss “precise policy options”. However, minutes said that economic analysis point to “the need to review, and possibly reconsider, the monetary policy stance at the next monetary policy meeting in early March when the new ECB staff macroeconomic projections would be available, in order to secure a return of inflation rates towards levels below, but close to, 2%”. The Governing Council also believed that reassurance that the ECB has “a variety of instruments at its disposal to respond to circumstances and that there was no limit to how far it was willing to deploy instruments within its mandate” would help to anchor inflation expectations “and underline the significant differences in the monetary policy cycles between major advanced economies”. Minutes noted that ECB’s monetary policy should be predictable but – while conveying that the Governing Council was active and alert – should not be seen as being pre-committed or geared to fulfilling prevailing undue market expectations. For more information, read our latest forex news.