Details of the January 2015 ECB governing council monetary policy meeting 22 January 2015
- Purchases to compliment previous programs
- ECB will by €60bn per month of assets until end of September 2016
- Will buy government bonds in secondary market in March
- Will buy until ECB sees sustained inflation im
- provement
- Changes TLTRO pricing to equal MRO rate
- Removes 10bp spread on TLTRO for future
- Council regains control over program features
- Agency debt will be subject to loss sharing
- Will coordinate purchases and will implement program decentrally
- Agency debt will be 12% of additional purchases
- Rest of purchases won’t be risk shared, ECB will hold 8% of additional asset purchases
- ECB decision reflects adverse developments
- Potential for second round effects have increased
- Market based inflation expectation measures worsened
- Economic slack still sizeable
- Money and credit to remain subdued
- Action needed to achieve inflation target
- Action will underpin inflation expectations
- Measures will ease policy stance further
- Sees increasing differences in policy cycles globally
- Decisions should help push inflation higher
- Oil prices have strengthened economic potential
- Downside risks should have diminished now
- Inflation seen very low and negative in coming months and is unavoidable
- Sees inflation gradually rising later in 2015 & 2016
- Council will monitor price risks closely
- Will watch impact of FX developments on prices
- Decisive action needed from other policy areas
- Calls for decisive productivity and labour market reforms
- Fiscal policies should support economic recovery
- Lending to companies remains weak
On to Q&A. The ECB feed is kaput my end.
For anyone else who’s lost it Bloombergs “live event” feed is running online
