© Reuters. By Yasin Ebraim Investing.com – The euro fluctuated against the dollar but ended the day flat on Thursday as the European Central Bank signaled that policy would stay low longer, but signs of division among bankers on tapering pave a rocky road in the September meeting. fell 0.07% to $ 1.2171 after hitting a low of $ 1.2144. The European Central Bank left its key interest rate unchanged at 0.00% and said it expected to continue buying in the “next quarter” at a “significantly higher” pace than in the first months of 2021. Before the decision inflation ran high, leading many to believe that the bank would have to go the extra mile to reassure investors that any notion of tapering would be dead on arrival. The rise in inflation was included in the central bank’s most recent projection as it raised its forecasts for economic growth and inflation for this year and 2022, but as a sign that it believes the pressure will be temporary, its forecast for 2023 remained unchanged. The ECB also welcomed the market recovery and described the risks to the economic outlook as “largely balanced”. That admission of an improving recovery hasn’t changed the bank’s thinking to tapering. ECB Governor Christine Lagarde “insisted that there was no discussion at the meeting about the pace or nature of asset purchases beyond the quarter ahead,” said Daiwa Capital Markets. But behind the scenes at the central bank, not all of its members seem to be signing from the same page, which would cause the ECB governor some difficult months. “Lagarde admitted that there had been some mixed views in the Governing Council on today’s decision on the near-term pace of purchases, which gave a taste of the potentially bitter debates at the September meeting,” added Daiwa. However, aside from the delicate taper talks, most are seeing the euro win against the dollar on the backdrop of an improving euro zone economy as vaccinations pick up pace and allow for a faster reopening of the 1.25 levels this summer ING said earlier this week. Disclaimer: Fusion Media advises you that the data contained on this website is not necessarily real-time or accurate. All CFDs (stocks, indices, futures) and forex prices are not provided by exchanges, rather, they are provided by market makers. Therefore, prices may not be accurate and may differ from actual market price, meaning that prices are indicative and not suitable for trading purposes, therefore Fusion Media assumes no responsibility for any trading losses you incur by using them Fusion Media or anyone involved in Fusion Media is not assuming any responsibility Liability for loss or damage due to reliance on the information, including data, prices, charts and buy / sell signals, contained on this website. Please inform yourself comprehensively about the risks and costs associated with trading in the financial markets, as it is one of the riskiest forms of investment.