European Central Bank
European Central Bank Leaves Interest Rates Unchanged and Stops New Asset Purchases
December 13, 2018
The ECB’s interest rate structure has been at a record low since March 2016, consisting of a zero refinancing rate flanked by an overnight deposit rate of negative 0.40% and a marginal lending facility rate of +0.25%. At its last policy review of 2018, the central bank’s Governing Council reaffirmed that these rates are likely […] More
European Central Bank Accentuates the Cup Being Half Full
October 25, 2018
Today’s ECB Governing Council meeting was not one associated with updated macroeconomic forecasts, but the President Draghi’s introductory statement and press conference expressed confidence in a coming convergence of currently muted inflation on the target of less than but close to 2%. The Council expects continuing positive broadly based economic growth despite some recent weakening […] More
Focus Turns to Central Banks
October 25, 2018
The dollar this Thursday is narrowly mixed with upticks of 0.2% against the yen and Swiss franc and of 0.1% versus the loonie but downticks of 0.3% vis-a-vis the Aussie dollar and peso, 0.1% relative to sterling, the euro, and kiwi. The yuan is steady. Japan’s Nikkei plunged 822 points or 3.7%. Share prices also […] More
ECB Policy Meeting Produces No Surprises or Significant Developments
September 13, 2018
The European Central Bank Governing Council left its policy settings unchanged. The three key interest rates — a zero percent refinancing rate flanked by a -0.40% deposit rate and a 0.25% marginal lending facility rate — will not be increased through the summer of 2019. Asset purchases will total EUR 30 billion this month and […] More
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
