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ECB Announcement

What is 'ECB Announcement '

An announcement by the European Central Bank (ECB) Governing Council after their first meeting of the month which is devoted to monetary policy. The ECB Announcement comes about 45 minutes after the meeting in a press conference, and details their actions or lack of actions decided in the meeting.

Because the ECB does not publish the minutes of its meetings, the ECB Announcement is important to gather information regarding upcoming interest rate policy.

Explaining 'ECB Announcement '

European market participants speculate on the possibilities of an interest rate change at these meetings. The ECB has a target rate for inflation, measured by the Harmonized Index of Consumer Prices (HICP), of 2%. Interest rates are changed to help maintain an inflation rate close to their target. As with interest rate speculation in other markets, if the ECB Announcement provides information different from the speculation, severe market impact is usually seen.

A general rule to keep in mind when interpreting central bank data such as that released in this announcement, is that higher interest rates are bearish for equity markets, while lower rates are bullish.


Further Reading


Effects of ECB balance sheet policy announcements on inflation expectations
www.tandfonline.com [PDF]
… which is significant at the 5% level, of 5 basis points on average per announcement at the … d Announced on 7 August, a Sunday, so that incorporated into market prices on 8 August … Table 2. Reactions of euro area inflation swap rates to ECB balance sheet policy announcements …

Using intraday data to gauge financial market responses to Fed and ECB monetary policy decisionsUsing intraday data to gauge financial market responses to Fed and ECB monetary policy decisions
papers.ssrn.com [PDF]
… which is significant at the 5% level, of 5 basis points on average per announcement at the … d Announced on 7 August, a Sunday, so that incorporated into market prices on 8 August … Table 2. Reactions of euro area inflation swap rates to ECB balance sheet policy announcements …

State of the Union: The Financial Crisis and the ECB's Response between 2007 and 2009State of the Union: The Financial Crisis and the ECB's Response between 2007 and 2009
heinonline.org [PDF]
… which is significant at the 5% level, of 5 basis points on average per announcement at the … d Announced on 7 August, a Sunday, so that incorporated into market prices on 8 August … Table 2. Reactions of euro area inflation swap rates to ECB balance sheet policy announcements …

Unconventional monetary policy of the ECB during the financial crisis: An assessment and new evidenceUnconventional monetary policy of the ECB during the financial crisis: An assessment and new evidence
papers.ssrn.com [PDF]
… which is significant at the 5% level, of 5 basis points on average per announcement at the … d Announced on 7 August, a Sunday, so that incorporated into market prices on 8 August … Table 2. Reactions of euro area inflation swap rates to ECB balance sheet policy announcements …

Financial markets effects of ECB unconventional monetary policy announcementsFinancial markets effects of ECB unconventional monetary policy announcements
papers.ssrn.com [PDF]
… which is significant at the 5% level, of 5 basis points on average per announcement at the … d Announced on 7 August, a Sunday, so that incorporated into market prices on 8 August … Table 2. Reactions of euro area inflation swap rates to ECB balance sheet policy announcements …

What matters when? The impact of ECB communication on financial market expectationsWhat matters when? The impact of ECB communication on financial market expectations
www.tandfonline.com [PDF]
… which is significant at the 5% level, of 5 basis points on average per announcement at the … d Announced on 7 August, a Sunday, so that incorporated into market prices on 8 August … Table 2. Reactions of euro area inflation swap rates to ECB balance sheet policy announcements …

The financial and macroeconomic effects of OMT announcementsThe financial and macroeconomic effects of OMT announcements
papers.ssrn.com [PDF]
… which is significant at the 5% level, of 5 basis points on average per announcement at the … d Announced on 7 August, a Sunday, so that incorporated into market prices on 8 August … Table 2. Reactions of euro area inflation swap rates to ECB balance sheet policy announcements …

Announcements of ECB unconventional programs: Implications for the sovereign spreads of stressed euro area countriesAnnouncements of ECB unconventional programs: Implications for the sovereign spreads of stressed euro area countries
www.sciencedirect.com [PDF]
… which is significant at the 5% level, of 5 basis points on average per announcement at the … d Announced on 7 August, a Sunday, so that incorporated into market prices on 8 August … Table 2. Reactions of euro area inflation swap rates to ECB balance sheet policy announcements …

Do financial markets learn from ECB monetary policy?Do financial markets learn from ECB monetary policy?
www.sciencedirect.com [PDF]
… which is significant at the 5% level, of 5 basis points on average per announcement at the … d Announced on 7 August, a Sunday, so that incorporated into market prices on 8 August … Table 2. Reactions of euro area inflation swap rates to ECB balance sheet policy announcements …

The Euribor futures market: Efficiency and the impact of ECB policy announcementsThe Euribor futures market: Efficiency and the impact of ECB policy announcements
onlinelibrary.wiley.com [PDF]
… which is significant at the 5% level, of 5 basis points on average per announcement at the … d Announced on 7 August, a Sunday, so that incorporated into market prices on 8 August … Table 2. Reactions of euro area inflation swap rates to ECB balance sheet policy announcements …


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