ecb meeting dates 2020

The disruption of supply chains was impeding production plans in the manufacturing sector, while necessary measures to contain the further spread of the coronavirus were adversely affecting economic activity. Browse schedules for the meetings of the Governing Council and General Council of the ECB and related press conferences. However, this was unlikely to capture the full impact on the euro area. In order to maximise the effectiveness of the monetary policy response, coordination with fiscal and supervisory policies was deemed essential. Second, from a policy perspective, the severity of the anticipated economic consequences of the coronavirus pandemic had already led to wide-ranging policy actions by several central banks, including the Federal Reserve System. By offering funding at the deposit facility rate, the LTROs would allow banks to benefit from very favourable borrowing conditions immediately and, at the same time, offer them a high degree of flexibility at a low operational cost. Moreover, the higher purchase pace would ensure that the Eurosystem showed a more robust presence in the market during times of heightened volatility, not least in the market for corporate bonds. Finally, in foreign exchange markets, with the outbreak of the coronavirus in China in mid-January 2020, the US dollar had begun a period of marked appreciation against all currencies, including the euro. In TLTRO III, considerably more favourable terms would be applied during the period from June 2020 to June 2021 to all TLTRO III operations outstanding during that same time. The ECB is responsible for administering the monetary policy of the Eurozone. According to Eurostat, euro area annual HICP inflation was 1.2% in February 2020, compared with 1.4% in January. Moreover, the maximum total amount that counterparties would henceforth be entitled to borrow in TLTRO III operations would be raised to 50% of their stock of eligible loans as at 28 February 2019. Even if limited so far, the appreciation of the euro added to the tightening of financial conditions and, if it proved to be more persistent, could be a further drag on the economy and inflation dynamics. The disruption of supply chains was impeding production plans in the manufacturing sector, while the necessary containment measures against the further spread of the coronavirus were adversely affecting activity in the services sector, notably related to transport, travel and recreational services. The response needed to have three elements: first, to safeguard liquidity conditions in the banking system; second, to protect the continued flow of credit to the real economy; and third, to prevent financing conditions for the economy from tightening in a pro-cyclical way. ** In accordance with Article 284 of the Treaty on the Functioning of the European Union. Dig deeper into the ECB’s activities and discover key topics in simple words and through multimedia. MILAN — German government bond yields held steady on Wednesday, as expectations of fresh easing measures by the ECB … It was pointed out that, whereas during the financial crisis of 2008 banks were at the heart of the problem, the current situation differed in the sense that problems would materialise first in the real economy and would subsequently be reflected in banks’ balance sheets. If lockdown measures were implemented more broadly and for a longer time period, a substantial recession could be envisaged. Comparison table with advanced search (Min. However, the severity of the sell-off needed to be assessed in the broader market context in which it had taken place. Moreover, euro area banks had underperformed the broader euro area equity market since the outbreak of the coronavirus, with bank stocks down by over 30% since 20 February 2020. In this context, international coordination was seen as particularly important. As regards the external environment, members noted that there were clear downside risks to the ECB staff projections for global activity, given that these had been finalised in February, prior to the spread of the coronavirus beyond China and the subsequent reaction of the financial markets. In particular, through the expectations component of bond yields, cuts in the short-term policy rate were more suited to setting the medium-term orientation of monetary policy than navigating a path through a temporary period of elevated uncertainty. While limited so far, the euro’s recent appreciation added to the tightening of financial conditions, which ‒ if it proved to be more persistent ‒ could move inflation expectations further away from the Governing Council’s aim. However, this depicted the situation before the global outbreak of the coronavirus. Additional net purchases would support policy transmission to the long end of the risk-free yield curve and provide some form of backstop for public and private bond markets. It was cautioned, however, that the reduction in the lending performance threshold to 0% might turn out to be insufficiently supportive if banks were forced to reduce their credit exposure because of supervisory concerns or market pressures, possibly resulting in a contraction of credit. Money growth continued to reflect ongoing bank credit creation for the private sector and low opportunity costs of holding M3 relative to other financial instruments. In order to allow banks to make full use of the ECB’s lending facilities, members widely welcomed Mr Lane’s proposal to task the Eurosystem committees with studying ways to further broaden the collateral framework. The narrow monetary aggregate M1 continued to be the main contributor to broad money growth. Publishing date: Nov 26, 2020 • • 2 minute read. The members of the Governing Council subsequently finalised the introductory statement, which the President and the Vice-President would, as usual, deliver at the press conference following the end of the current Governing Council meeting. With governments prioritising public health issues over short-term economic concerns in order to contain the pandemic, it was argued that containment measures not only reduced economic activity sharply in the short run, but could also be expected to spread out the impact on the economy over time. Limiting the additional envelope to the current calendar year was deemed an appropriate response to a shock that was assessed as being temporary at this stage. On communication, it was stressed that, in view of the current developments, the Governing Council would continue to monitor closely the consequences of the spread of the coronavirus for the economy, for medium-term inflation and for the transmission of monetary policy, and it would stand ready to adjust all of its measures, as appropriate, to ensure that inflation moved towards its aim in a sustained manner in line with its commitment to symmetry. ECB president Christine Lagarde could not have repeated the main message of today’s meeting more often: there will be additional stimulus, the only question is what this stimulus will look like. There was uncertainty about the need to revise the outlook for inflation in the medium term, which was the policy-relevant horizon for the ECB’s price stability objective. Look at press releases, speeches and interviews and filter them by date, speaker or activity. Turning to euro area activity, members agreed that the spread of the coronavirus was a major shock to growth prospects and that the impact on the euro area economy could be severe, even if it was, in principle, temporary. Although the source of the shock was outside the realm of monetary policy and was to be primarily addressed by timely and targeted fiscal policies, a forceful package of monetary policy measures was seen as necessary. Before the outbreak of the coronavirus, euro area real GDP growth had moderated to 0.1%, quarter on quarter, in the fourth quarter of 2019, following growth of 0.3% in the third quarter. The price-to-book ratios of euro area banks had fallen to new historical lows. Find out how the ECB promotes safe and efficient payment and settlement systems, and helps to integrate the infrastructure for European markets. The point was made that the ultimate medium-term implications were not independent of short-term events and that the magnitude and duration of the shock’s impact would in turn depend on the course of the pandemic and the policy reaction to it. A temporary envelope of additional net asset purchases of €120 billion would be added until the end of the year, ensuring a strong contribution from the private sector purchase programmes. Over the medium term, the increase in inflation would be supported by the Governing Council’s monetary policy measures and – looking through the coronavirus shock in the nearer term – the anticipated recovery in euro area growth dynamics. The size of the impact would be determined, in particular, by the further spread of the coronavirus and the extent of the containment measures implemented. 16/07/2020 Press conference following the Governing Council meeting of the ECB in Frankfurt While a few members expressed their willingness to consider a cut in the deposit facility rate at the current meeting, most members were of the view that increasing the APP would be more effective in lowering risk-free rates. Since late February 2020 the US dollar had been volatile against major currencies, which likely also reflected the impact of changes in monetary policy expectations. The additional LTROs would temporarily ease funding conditions for banks, in order to provide an effective bridge to the TLTRO III operation in June 2020. In combination with the existing APP, an additional temporary envelope of €120 billion until the end of the year, with a strong contribution from the private sector purchase programmes, would support favourable financing conditions for the real economy in times of heightened uncertainty. Ms Schnabel reviewed the latest financial market developments, focusing on the implications of the coronavirus (COVID-19) pandemic from three different perspectives: a contextual perspective, a policy perspective and a stability perspective. Staff projected the HICP to rise gradually, but the same uncertainty that applied to the growth outlook also applied to the inflation outlook. With regard to the monetary policy stance, members widely shared the assessment provided by Mr Lane in his introduction. For counterparties that maintained their levels of credit provision, the rate applied in these operations would be lower, and, over the period ending in June 2021, could be as low as 25 basis points below the average interest rate on the deposit facility. The yield of the ten-year German government benchmark bond, at currently -75 basis points, was also very close to its historical trough recorded in late summer 2019. The situation therefore had to be monitored closely and everything possible should be done in all policy domains to ensure that permanent damage was contained. Learn more about how we use cookies, We are always working to improve this website for our users. In the exchange of views about the implications of the coronavirus outbreak for the outlook for inflation, a number of factors were stressed. In particular, measures such as providing credit guarantees were needed to complement and reinforce the ECB’s monetary policy measures. Long-term market-based inflation expectations had fallen alongside oil prices. The annual growth rate of loans to households had picked up slightly to 3.7% in January 2020, from 3.6% in December 2019. Read about the ECB’s monetary policy instruments and see the latest data on its open market operations. With regard to the economic analysis, members broadly shared the assessment of the outlook and risks for economic activity in the euro area provided by Mr Lane in his introduction. Third, to add a temporary envelope of additional net asset purchases amounting to €120 billion until the end of the year. 03/12/2020 General Council meeting of the ECB in Frankfurt In combination with the existing asset purchase programme (APP), the temporary envelope would support financing conditions more broadly and thereby also ease the interest rates that matter for the real economy. On the other hand, it was emphasised that the outlook depended critically on the strength of the policy response. Article content. https://www.ecb.europa.eu/press/pressconf/2020/html/ecb.is200312~f857a21b6c.en.html, https://www.ecb.europa.eu/press/pr/date/2020/html/ecb.mp200312~8d3aec3ff2.en.html, https://www.ecb.europa.eu/press/pr/date/2020/html/ecb.pr200312_2~06c32dabd1.en.html, https://www.ecb.europa.eu/press/pr/date/2020/html/ecb.pr200312_1~39db50b717.en.html, Meeting of the ECB’s Governing Council, 11-12 March 2020. Throughout this period, the interest rate on these TLTRO III operations would be 25 basis points below the average rate applied in the Eurosystem’s MROs. The council’s decisions are always announced via press release at 1.45pm CET on the day of the meeting, followed by an ECB press conference at 2.30pm CET. The minutes of regularly scheduled meetings are released three weeks after the date of the policy decision … (Official website) FOMC Meeting Schedule 2020 (FOMC Meeting calendar ) The view was widely shared that the present, very challenging circumstances called for a maximum degree of cohesion, consensus and unity in the Governing Council, notwithstanding different preferences with regard to the various monetary policy instruments under consideration. It was considered more than likely that the recent developments seen in Italy would soon be repeated in many other countries. Published Thu, Apr 30 2020 7:48 AM EDT Updated Thu, May 7 2020 6:14 AM EDT. Financial conditions and bank funding conditions in the euro area had tightened since the Governing Council’s previous monetary policy meeting. In view of the expected temporary nature of the shock and the proposed measures, members agreed that it did not seem appropriate to lower the deposit facility rate on this occasion. At the same time, it was essential to maintain the option of future cuts in the policy rate in case warranted by a tightening in financial conditions or a threat to the ECB’s medium-term inflation aim. if (d.getElementById(id)) return; It was observed that the impact of the coronavirus pandemic was being felt particularly sharply in services sector activities, such as travel and tourism. 07/10/2020 The ECB’s monetary policy in the pandemic: meeting the challenge https://www.ecb.europa.eu/press/key/date/2020/html/ecb.sp201006~e1d38a1ccc.en.html 2/12 Mr Dombrovskis, Commission Executive Vice-President **, Ms Senkovic, Secretary, Director General Secretariat, Mr Smets, Secretary for monetary policy, Director General Economics, Mr Winkler, Deputy Secretary for monetary policy, Senior Adviser, DG Economics, Ms Graeff, Director General Communications, Ms Rahmouni-Rousseau, Director General Market Operations, Mr Rostagno, Director General Monetary Policy, Mr Sousa, Deputy Director General Economics. On the other hand, the picture of broadly unrevised inflation in the medium term could be questioned, in view of the recent sharp decline in oil prices and the possibility that a more persistent effect on demand would materialise. ECB consists of 19 EU member states. Although the Governing Council did not see material signs of strains in money markets or liquidity shortages in the banking system, these operations would provide an effective backstop in case of need. The S&P 500 volatility index (VIX) had risen above the levels seen during the height of the sovereign debt crisis. The Governing Council’s monetary policy meeting is held every six weeks, with the next meeting scheduled for Thursday 12 March 2020. 29/10/2020 Press conference following the Governing Council meeting of the ECB in Frankfurt At the same time, it was seen as important for the Governing Council to stress, in line with its current forward guidance, that rates could be lowered further if the Governing Council considered this to be appropriate. Members concluded that the risks surrounding the euro area growth outlook were clearly on the downside. 30/04/2020 Press conference following the Governing Council meeting of the ECB in Frankfurt Money growth was reflecting ongoing bank credit creation for the private sector and low opportunity costs of holding M3 relative to other financial instruments. It was argued that, in the short term, the shortfall in demand could be expected to outweigh any supply-side effects. For counterparties whose eligible net lending met the benchmark, the interest rate applied would be 25 basis points below the average interest rate on the deposit facility prevailing over the same period, and in any case not higher than -0.75%. Compared with the December 2019 Eurosystem staff projections, the outlook for real GDP growth had been revised down notably for 2020 and slightly for 2021, on account of the potential economic impact of the coronavirus outbreak. The Governing Council expected the key ECB interest rates to remain at their present or lower levels until it had seen the inflation outlook robustly converge to a level sufficiently close to, but below, 2% within its projection horizon, and such convergence had been consistently reflected in underlying inflation dynamics. This easing mainly reflected the ongoing weakness in the euro area manufacturing sector and reduced investment growth. 20/05/2020 Governing Council of the ECB: non-monetary policy meeting in Frankfurt Such a scenario was currently materialising. Like all convertible baby cribs, Ecb 2020 Meeting Dates, new Camry Hybrid comes down. At today’s meeting the Governing Council of the ECB took the following monetary policy decisions: (1) The interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.00%, 0.25% and -0.50% respectively. In its communication, the Governing Council needed to: (a) note that the latest indicators suggested a considerable worsening of the near-term growth outlook; (b) acknowledge that the economic consequences of the coronavirus were only partly reflected in the March staff macroeconomic projections, as their cut-off date predated the rapid spread of the coronavirus in the euro area; (c) highlight that there were substantial downside risks to the euro area outlook, since the spread of the coronavirus had added a new and substantial source of risk; (d) stress that, in view of current developments, the Governing Council would continue to monitor closely the consequences of the spreading coronavirus for the economy, for medium-term inflation and for the transmission of its monetary policy, and that it would stand ready to adjust all of its measures, as appropriate, to ensure that inflation moved towards its aim in a sustained manner; (e) welcome the commitment and readiness of euro area governments and European institutions to take joint policy action in the current situation, but reiterate the need for a more supportive and targeted fiscal stance in view of the weakened outlook and to safeguard against the further materialisation of downside risks. Measures of underlying inflation had moved sideways and market-based measures of inflation expectations had reached new historical lows. Some have speculated that bond purchases might peter out before the scheduled end-date of June 2021, allowing the programme to end without the ECB … Neither of these scenarios incorporated either a monetary policy or a fiscal policy reaction. However, a U-shaped recovery was now considered more likely than such a V-shaped recovery. It was also remarked that an increase in the envelope of the APP could be seen as an appropriate way to support a coordinated policy response, as the Governing Council was urging policymakers to take decisive fiscal measures. The ten-year US Treasury yield had, for the first time in history, fallen below the 1% level. First, such a package would mitigate the threat of a liquidity and credit crunch further aggravating the situation in the real economy. While the baseline scenario was that the main economic impact was temporary, with a recovery in activity later this year, the spread of the coronavirus represented a substantial downside risk to the euro area growth outlook. In this context, it was remarked, however, that it was difficult to distinguish whether observed spreads were driven by an increase in credit risk or a lack of liquidity. MEETING DEADLINES # MEETING DATE Higher Ed Submission Submit to OBM by 11:59 p.m. OBM Analyst Review Agenda Published; 1: 01/25/2021: 12/23/2020: 01/05/2021: 01/12/2021 This widening had offset the previous marked easing in financial conditions observed in 2019. A flexible expansion of APP net purchases was also seen as partially compensating for not cutting the deposit facility rate, with the public sector purchases helping to preserve a risk-free rate that served as a benchmark for pricing many other financial products. While the implications of the coronavirus pandemic pointed to a considerable worsening of the euro area growth outlook and increased downside risks in the near term, the implications for inflation were surrounded by high uncertainty in the light of supply disruptions and weaker demand. FOMC holds eight regularly scheduled meetings during the year and other meetings as needed. Below is a the calendar of upcoming ECB meetings in 2019, See “local time” of this event in Live Economic Calendar >>. The interest rate on the MROs and the interest rates on the marginal lending facility and the deposit facility would remain unchanged at 0.00%, 0.25% and -0.50% respectively. Loans to the private sector had continued to expand. Indicators of inflation expectations had fallen and measures of underlying inflation remained generally muted. deposit, Trade lot, Leverage, Spread, Digits after dot, Other Features) and Binary Options Brokers Rating. var js, fjs = d.getElementsByTagName(s)[0]; However, some reservations were also expressed regarding the case for expanding the public sector purchase programme as a means of preserving or lowering the risk-free yield curve at a time when higher-rated government bond yields had fallen to record low levels in an environment of heightened risk aversion. Summing up, Mr Lane remarked that the spread of the coronavirus was a major shock to the world and the euro area economies, with severe near-term implications for aggregate expenditure levels and supply chains. * Members not holding a voting right in March 2020 under Article 10.2 of the ESCB Statute. We see a high bar for the ECB to attempt to forcefully talk down the euro. Navigation Path: Home›Media›Monetary policy accounts›9 April 2020. Together with the substantial monetary policy stimulus already in place, these measures would support liquidity and funding conditions and help preserve the smooth provision of credit to the real economy. The disruption of supply chains was impeding production plans in the manufacturing sector, while necessary containment measures against the further spread of the coronavirus were adversely affecting economic activity. In other jurisdictions, including the euro area, expectations of policy easing had risen markedly. Overall, the package was seen as appropriate to address the three elements of the proposed policy response, though some nuances were expressed with regard to individual components. Members widely shared the view that the proposed changes to the TLTRO III operations would support bank lending to the firms affected most by the spread of the coronavirus, in particular SMEs. While most indicators had remained robust or stronger than expected into February 2020, the latest information suggested a considerable worsening of the near-term growth outlook. Agreement also prevailed with regard to the third element of the required monetary policy response, namely safeguarding the monetary policy stance by averting a procyclical tightening of financing conditions in the economy. In mid-February 2020 the euro had briefly fallen to its lowest level against the US dollar in nearly three years. In a risk scenario, the projections suggested that the negative impact on euro area output could become substantially larger, ranging from 0.6 to 0.9 percentage points depending on the models used. It was argued that the provision of the additional envelope until the year-end would allow enough flexibility in the implementation of the purchases to temporarily target markets where conditions were particularly tight. Against the background of the pandemic, it was emphasised that the outlook for the euro area was subject to an exceptionally high level of uncertainty and that the March ECB staff projections already appeared rather outdated, as they predated the rapid spread of the coronavirus in Europe. A remark was made that although the envelope of €120 billion seemed large, in the face of the disruptions that had been witnessed a larger volume would be justified. 10/12/2020 Press conference following the Governing Council meeting of the ECB in Frankfurt. Petr Krpata, CFA . Together with the substantial monetary policy stimulus already in place, these measures would support liquidity and funding conditions and help to preserve the smooth provision of credit to the real economy. The changes in policy rates, as well as expectations of further easing, had amplified price movements seen in global sovereign bond markets. 30 April 2020. While no signs of strains in money markets or liquidity shortages in the banking system were currently seen, the operations would provide an effective backstop in case of need. These containment measures, including the lockdown already in place in Italy, would adversely affect activity in the short run. Third, from a stability perspective, implied volatility had increased sharply across asset classes, and market liquidity in both private and public credit markets had tightened since the coronavirus started to spread more quickly beyond China. Members welcomed the proposed additional LTROs, which would immediately ease funding conditions for banks, thus providing an effective bridge to the TLTRO III operation in June 2020 that would be conducted at the proposed, more favourable terms. On the one hand, it was argued that recent forecasts did not take into account the very rapid deterioration in economic conditions in Europe and that it would be difficult, if not impossible, to avoid a recession. The overall magnitude and duration of the shock remained highly uncertain. As regards forward guidance, it was emphasised that the Governing Council expected the key ECB interest rates to remain at their present or lower levels until the Governing Council had seen the inflation outlook robustly converge to a level sufficiently close to, but below, 2% within the projection horizon, and such convergence had been consistently reflected in underlying inflation dynamics. Publishing date: Dec 02, 2020 • • 2 minute read. The private sector purchases would provide a strong signal of support for favourable funding conditions in the corporate sector. In view of the expected temporary nature of the shock, the easing of the monetary stance provided by the additional asset purchases and the considerable support for credit supply through the revised TLTRO III programme, the Governing Council should not reduce the deposit facility rate on this occasion. Article content . In the mild scenario produced by ECB staff, the downward impact on inflation in 2020 was assumed to be around 0.2 percentage points, while the impact in a severe scenario was expected to be between 0.4 and 0.8 percentage points. Regarding the external environment, global indicators at the turn of the year had been pointing to a stabilisation in activity. Turning to money and credit developments, the annual growth rate of M3 had stood at 5.2% in January 2020, having moderated somewhat from its recent peak. While the magnitude of the downward revision to growth in the short term was very uncertain, the direction was very clear. In this regard, it was underlined that commensurate action by governments and supervisors could support effective monetary transmission, for example via credit guarantees. Market-based indicators of longer-term inflation expectations had fallen to a new all-time low, with the euro area five-year forward inflation-linked swap rate five years ahead standing at 0.92% on 10 March 2020. Members agreed that a decisive monetary policy response was required in the present circumstances, both to preserve the monetary stance and to underpin the monetary transmission mechanism. This fall had later been exacerbated by the breakdown of the talks between the Organization of the Petroleum Exporting Countries (OPEC) and Russia on the coordination of oil production targets. In addition to the previously identified risks related to geopolitical factors, rising protectionism and vulnerabilities in emerging markets, the spread of the coronavirus added a new and substantial source of downside risk to the growth outlook. On the monetary analysis, members broadly concurred with the assessment provided by Mr Lane in his introduction that monetary dynamics had moderated, due in part to decelerating bank lending to firms. 04/06/2020 Press conference following the Governing Council meeting of the ECB (external meeting hosted by De Nederlandsche Bank) Although the proposed measures were considered to be adequate for the time being, the view was held that, as the spread of the coronavirus continued to unfold, the Governing Council might be confronted with continued market pressures and expectations of further policy actions at its meetings for some time to come. Private sector forecasters were also in the process of revising down significantly their growth outlook for 2020. (function(d, s, id) { However, it was also argued that this was not sufficient to ensure that the liquidity made available to banks would be passed on to the end-users. While labour cost pressures had so far remained steady amid tighter labour markets, the weaker growth momentum was delaying their pass-through to inflation. They would be carried out through a fixed rate tender procedure with full allotment, with an interest rate that was equal to the average rate on the deposit facility.

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