“The Governing Council decided to increase the envelope of the pandemic emergency purchase programme (PEPP) by €500 billion to a total of €1,850 billion. It also extended the horizon for net purchases under the PEPP to at least the end of March 2022. ” – ECB Press Release. Dec. 10, 2020
Monetary Policy
Fireside Chat: The Case for (Eventual) Inflation (Institutional Investor)
“The combination of massive unconventional monetary policy and the increasing willingness of policymakers to take advantage of historically low interest rates and embrace the aggressive use of fiscal policy could eventually set the stage for a medium-term shift in the inflation backdrop.” – from Erik Weisman
Federal Reserve issues FOMC statement (US Federal Reserve)
“With inflation running persistently below this longer-run goal, the Committee will aim to achieve inflation moderately above 2 percent for some time so that inflation averages 2 percent over time and longer-term inflation expectations remain well anchored at 2 percent. The Committee expects to maintain an accommodative stance of monetary policy until these outcomes are […]
Interview with Isabel Schnabel, Member of the Executive Board of the ECB, and the FT (ECB)
“The ECJ ruled in December 2018 that the PSPP is legal. Therefore, it is clear for us that we can and have to continue our monetary policy in line with our mandate to make sure that in the medium term we are getting back to our inflation aim of below, but close to, 2 per […]
Interview with Philip R. Lane, Member of the Executive Board of the ECB (El País)
“The speed at which the economy bounces back will then hinge on whether consumers are more reluctant to consume and businesses hold back on investment. From today’s perspective, it looks in any case unlikely that economic activity will return to its pre-crisis level before 2021, if not later.” – Luis Doncel
March 2020 UK Monetary Policy Summary (Bank of England)
“The Government has announced a series of substantial fiscal support measures to alleviate some of the severe cashflow problems facing businesses and households. The Bank of England also has a role to play in supporting businesses and households through the economic disruption associated with Covid-19.”
ECB shakes off limits on new €750bn bond buying plan (FT)
“The details of the new programme support the declaration by Christine Lagarde, the ECB’s president, who said on Twitter after it was announced last week: ‘There are no limits to our commitment to the euro.’” – by Martin Arnold and Tommy Stubbington
ECB announces €750 billion Pandemic Emergency Purchase Programme (ECB)
“This new Pandemic Emergency Purchase Programme (PEPP) will have an overall envelope of €750 billion. Purchases will be conducted until the end of 2020 and will include all the asset categories eligible under the existing asset purchase programme (APP).” – ECB Governing Council
Bank of England Cuts Rate to 0.1%
“The Monetary Policy Committee at a special meeting on 19 March voted to cut Bank rate to 0.1% and increase its holdings of UK government and corporate bonds by £200 billion.” – Bank of England
Repo rate raised to zero per cent (Sveriges Riksbank – Swedish Central Bank)
“Inflation has been close to the Riksbank’s target of 2 per cent since the start of 2017, and the Riksbank assesses that conditions are good for inflation to remain close to the target going forward. Therefore, in line with the assessment in October, the Executive Board has decided to raise the repo rate from –0.25 […]