setting the key interest rates for the euro area. Despite the recovery in the second half of the year, output at the end of 2020 is projected to remain about 5.2 percent below the level of output at the end of 2019. The Governing Council, the main decision-making body of the ECB, usually meets every two weeks. By. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. Save this article. Reproduction is permitted provided that the source is acknowledged. Realised and projected headline inflation. Sources: Haver and ECB staff calculations.Notes: Aggregation based on data for Germany, Spain, France, Italy and the Netherlands. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. Chart 8 shows the time series of the average euro area lending rate, broken down into the factors that banks consider when pricing a loan: the base rate (a term overnight interest swap rate); funding costs; credit risk; and the cost of capital. European Central Bank Monetary Policy Statement contains the outcome of the ECB's decision on asset purchases and commentary about the economic conditions that influenced their decision. Frankfurt, Germany Thursday 21 January 2021, 12:00 AM Add to calendar 21 Jan Frankfurt, Germany Thursday 21 January 2021, 12:00 AM; Follow us Twitter Linkedin Slideshare Flickr Youtube Facebook Instagram. The European Central Bank kept the three key policy rates unchanged and decided to reconfirm its accommodative monetary policy stance in its latest monetary policy committee meeting.The biggest announcement of the ECB’s monetary policy decision announced yesterday was the increase in the pandemic emergency purchase programme by 500 billion pound to a total of 1,850 billion pound and … Multiple daily strategies running 24/7 and FX expert guidance. In the initial response to the pandemic crisis, we adopted a comprehensive package of complementary measures, which are illustrated in Chart 4. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts. Our estimates show that TLTRO III liquidity can be expected to boost loan volumes considerably, to the tune of 3 percentage points cumulatively by 2022. The latest observations are for the second quarter of 2020 for realised data and the fourth quarter of 2022 for projections. We expect headline inflation to remain negative for the remainder of the year, before returning to positive territory in early 2021. In net terms, liquidity increased by €706 billion. Sources: ECB, euro area bank lending survey and ECB Banking Supervision survey on TLTRO III.4 use.Notes: The four bars on the right column measure the net liquidity injection in the June 2020 operation (change in TLTRO III take-up net of TLTRO II repayments and maturing bridge longer-term refinancing operations). Accordingly, the second stage of our monetary policy challenge is to deliver this goal: once we have returned towards the pre-pandemic inflation path, we have to ensure that our monetary policy stance is appropriately calibrated in order to ensure timely and robust convergence to our medium-term inflation aim. Rotation of voting rights of ECB Governing Council members. (quarter-on-quarter percentage changes, percentage point contributions). Note: All information on this page is subject to change. Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. Her hawkish view is considered as positive, or bullish for the EUR, whereas her dovish view is considered as negative, or bearish. Look at press releases, speeches and interviews and filter them by date, speaker or activity. To do this, we use the anonymous data provided by cookies. Navigation Path: Home›Media›Speeches›6 October 2020, I will provide a brief assessment of the macroeconomic outlook, discuss the ECB’s monetary policy response to the pandemic crisis and explain our current monetary policy challenge. In any event, the range of possible outcomes in the projections remains very wide. Learn more about how we use cookies, We are always working to improve this website for our users. 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