European Central Bank
ECB Decisions and Draghi Press Conference
June 14, 2018
Investors found the ECB message today somewhat more dovish than feared. To be sure, the released introductory statement confirmed that new asset purchases will be completed by the end of this year. Draghi’s statement asserts that “progress towards a sustained adjustment in inflation has been substantial so far. With longer-term inflation expectations well anchored, the […] More
A Trust-but-Verify Approach to ECB Monetary Policy
April 26, 2018
At the third monetary policy review of 2018, members of the Governing Council left all elements of the European Central Bank’s current monetary stance unchanged. A zero percent refinancing rate will continue to be flanked by a -0.40% deposit rate and a 0.25% marginal lending facility rate. Monthly purchases of long-term assets will proceed at […] More
European Central Bank Settles on EUR 30 Billion of Monthly Asset Purchases Through at Least September
October 26, 2017
The ECB made several decisions: The interest rate structure (a zero refinancing rate, a negative 0.40% deposit rate, and a 0.25% marginal lending rate) was not changed, and a promise was made not to lift rates until well past the ending of quantitative stimulus. The current 60 billion euro pace of monthly asset purchases will […] More
Thoughts on Last Weeks ECB Meeting
September 12, 2017
At the European Central Bank Governing Council meeting last Thursday, officials did not modify its interest rate structure: a refinancing rate of zero percent flanked by a negative 0.40% deposit rate and a 0.25% marginal lending facility rate. Nor did the committee change the parameters of its asset purchase program that runs to December at […] More
European Central Bank Espouses Patience and Persistence
July 20, 2017
The latest Governing Council statement expresses growing confidence in growth and a return of inflation to target but fails to define when policy stimulus will be throttled back and the possible timetable for such a process. The signals are mixed. The statement reiterates that quantitative stimulus will continue for as long as necessary and doesn’t […] More
ECB Leaves Policy Settings Same, Boosts Projected Growth but Trims Projected Inflation
June 8, 2017
The European Central Bank retained its refinancing rate at zero, its deposit rate at negative 0.40%, its marginal lending facility rate at +0.25%, and quantitative stimulus was reaffirmed at a monthly pace of EUR 60 billion through December 2017, “or beyond if necessary, and in any case until the Governing Council sees a sustained adjustment […] More
ECB in No Hurry to Rein in Stimulus
March 9, 2017
The Governing Council made no change in its interest rate structure and reiterated that any move to higher-than-present levels will occur “well after” quantitative stimulus ends. There will be EUR 80 billion of asset purchases this month followed by a pace of EUR 60 billion per month during the last nine months of 2017 or […] More
European Central Bank
January 19, 2017
All things considered, the Governing Council of the ECB sent a dovish signal to the marketplace but announced no policy modifications after the first of eight scheduled reviews in 2017. Consider, for example, that on-year inflation in the most recent twelve months compared to the previous 12 months through December 2015 had risen by 1.5 […] More
ECB Governing Council Statement and Press Conference
April 21, 2016
Fresh action had not been expected at the April policy meeting following the plethora of actions unveiled at the March 10 meeting. As predicted, the refinancing, deposit and marginal lending rates were kept at zero, -0.40% and +025%, and the emphasis of today’s message was on full implementation of steps announced in March. The statement […] More
European Central Bank Cuts Inflation View and Says More Stimulus is Possible in Early March
January 21, 2016
The previous Governing Council meeting on December 3 had cut the deposit rate by 10 basis points to negative 0.30%, extended the EUR 60 billion per month asset purchase program (APP) by six months to March 2017, and agreed to reinvest the maturing principal of assets purchased in the APP. Today’s meeting did not initiate […] More
