European Central Bank

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

ECB Statement and Press Conference

December 3, 2015

The Governing Council cut the deposit rate by a smaller-than-anticipated ten basis points to negative 0.30%, while failing to change the 0.50% refinancing rate, the 0.30% marginal lending facility rate or the EUR 60 billion per month size of its monthly asset purchases.  ECB President Draghi instead said the importance of an innovation to reinvest […] More

A Dovish ECB Message

September 3, 2015

Today’s Governing Council statement Left the refinancing, deposit and marginal lending rates at 0.05%, -0.20% and 0.30%, their levels since September 2014. Revised the projected future path of GDP growth and CPI inflation slightly downward because of a slowdown in emerging market economies and the recent drop in oil prices. Modified quantitative stimulus (QE) in […] More

ECB Statement and Press Conference

July 16, 2015

ECB President Draghi’s introductory statement focuses on monetary policy for the whole monetary union, while the press conference was preoccupied with the Greek situation. Comments on the Statement:  In an upbeat tone, the statement says the program of asset purchases totaling EUR 60 billion per month is going smoothly and will be sustained at least […] More

European Central Bank Offers Nothing New this Time

August 7, 2014

Draghi’s written statement, released after the Governing Council’s decision to leave its refinancing, marginal lending and deposit rates at 0.15%, 0.40% and negative 0.10%, reads very similarly to the July statement.  Officials continue to project “moderate and uneven recovery, with low rates of inflation and subdued monetary and credit dynamics.”  Expected inflation hasn’t moved and […] More

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