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3 Jul 2014
ECB modifies meeting cycle, will start publishing minutes
FXStreet (Łódź) - During the press conference following ECB's monetary policy meeting on Thursday, at which the Governing Council kept monetary policy unchanged, Mario Draghi announced two significant changes to the central bank's mode of operation as far as monetary policy meetings are concerned: beginning with January 2015 the meetings will be held every six weeks and minutes will start being released.
The ECB head also commented on the package of measures introduced last month, saying that they led to a further easing of the monetary policy stance. He assured that the Governing Council is unanimous in commitment to use unconventional measures, should Eurozone inflation stay low for a prolonged period of time.
Mario Draghi signaled that the TLTRO take up could reach 1 trillion euros and informed that that six TLTROs would be realized at quarterly intervals through June 2016. He suggested that cheap loans to banks would boost inflation towards the 2% target and said that the loans would be available for individual banks or for groups of financial institutions. Details on the TLTRO program are to be published after the press conference.
As far as the ABS purchases are concerned, Draghi said that preparations for the move were intensifying. He emphasized the importance of making ABS lending simple and transparent, avoiding exotic derivatives.
"Rates will be at present or lower level for an extended time," Mario Draghi reiterated, acknowledging that the economic recovery continued at a moderate pace in the second quarter of the year. "Risks surrounding economic outlook are to the downside," he said.
The ECB head also commented on the package of measures introduced last month, saying that they led to a further easing of the monetary policy stance. He assured that the Governing Council is unanimous in commitment to use unconventional measures, should Eurozone inflation stay low for a prolonged period of time.
Mario Draghi signaled that the TLTRO take up could reach 1 trillion euros and informed that that six TLTROs would be realized at quarterly intervals through June 2016. He suggested that cheap loans to banks would boost inflation towards the 2% target and said that the loans would be available for individual banks or for groups of financial institutions. Details on the TLTRO program are to be published after the press conference.
As far as the ABS purchases are concerned, Draghi said that preparations for the move were intensifying. He emphasized the importance of making ABS lending simple and transparent, avoiding exotic derivatives.
"Rates will be at present or lower level for an extended time," Mario Draghi reiterated, acknowledging that the economic recovery continued at a moderate pace in the second quarter of the year. "Risks surrounding economic outlook are to the downside," he said.