The European Central Bank's decision to raise its key interest rate by half a percent in July was opposed by some members of its governing council, according to an account of the meeting published on Thursday.
The ECB said a "very large majority" of members on the council had backed the move, but expressed concern with the "increasing risk of recession" to support smaller measures.
Instead, they hope to create a new tool to curb undue volatility in the government debt market has been unanimously supported.
Both decisions were seen by analysts at the time as a 'quid pro quo', which would tame inflation by raising rates faster than the bank proposed at its June meeting.
In addition to the real rate hike, which ends the ECB's experiment with negative interest rates, the bank has also indicated that it intends to raise rates again in September. However, it said its action in September will depend on economic data.
ECB board member Fabio Panetta has expressed opposition by telling a conference on Wednesday that the ECB does not need to raise rates further.
“We may have to adjust our monetary stance further, but …. we should be fully aware that the probability of an economic recession is increasing," Panetta said.
Europah zone inflation hit a new high of 8.9% in July. This means that real interest rates – adjusted for inflation – are still very negative.
The euro has shrunk to a 20-year low against the US dollar amid the ECB's reluctance to raise rates more aggressively.
