[European Central Bank: Governing Council, Frankfurt, 26 October 2017: Monetary policy decisions and Changes to Non-standard monetary policy measures

Background

ECB Governing Council decisions
The Governing Council of the European Central Bank, the main decision-making body of the ECB, usually meets every two weeks.

Every six weeks, it takes its monetary policy decision, i.e. setting the key interest rates for the euro area.

At the other meetings, the Governing Council takes decisions related to other tasks, such as payment systems, financial stability, statistics, banknotes, legal affairs, and banking supervision

Non-standard monetary policy measuresAt the meeting of the Governing Council of the ECB in Frankfurt on the 26 October 2017 the following monetary policy decisions were taken:

+ all interest rates were kept unchanged. The Governing Council continued to expect the key ECB interest rates to remain at their present levels for an extended period of time, and well past the horizon of the net asset purchases.

+ As regards non-standard monetary policy measures, purchases under the asset purchase programme (APP) would continue at the current monthly pace of €60 billion until the end of December 2017. From January 2018 the net asset purchases would be amended to a monthly pace of €30 billion until the end of September 2018, or beyond, if necessary, and in any case until the Governing Council saw a sustained adjustment in the path of inflation consistent with its inflation aim. If the outlook became less favourable, or if financial conditions become inconsistent with further progress towards a sustained adjustment in the path of inflation, the Governing Council stood ready to increase the APP in terms of size and/or duration.

Some commentators praised ECB President Mario Draghi for his cautious change of direction in monetary policy. For others the planned changes did not go far enough.

ECB: Press Release, 26.10.17: Monetary policy decisions http://www.ecb.europa.eu/press/pr/date/2017/html/ecb.mp171026.en.html

Euro|Topics: Debates, October 2017: Is Draghi's change of course too timid? http://www.eurotopics.net/en/188433/is-draghi-s-change-of-course-too-timid

EurActiv, 26.10.17: ECB prolongs monetary stimulus at smaller amount http://www.euractiv.com/section/economy-jobs/news/ecb-prolongs-monetary-stimulus-at-smaller-amount/

EUObserver, 27.10.17: ECB slows down eurozone support scheme https://euobserver.com/economic/139660

Politico, 26.10.17: Mario Draghi turns hawk, wants markets to see a dove https://www.politico.eu/article/ecb-mario-draghi-turns-hawk-wants-markets-to-see-a-dove/

ESO: Find further information on ECB Monetary Policy Decisions http://www.europeansources.info/advSearchLink?keyword=monetary%20policy%20decisions%20ecb%20&searchOption=all

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