25 August 2015SPEECH

Unconventional monetary policy at the ECB

Addressing the 30th Annual Congress of the European Economic Association in Mannheim, Germany, ECB Vice-President Vítor Constâncio explains how non-standard monetary policy measures can stimulate aggregate demand in the euro area.

Assessing the new phase of unconventional monetary policy at the ECB
The Governing Council of the European Central Bank
13 August 2015ACCOUNT

Account of monetary policy meeting published

The Governing Council unanimously agreed to maintain a steady monetary policy course, according to the account of its July monetary policy meeting. It reaffirmed the need to fully implement current measures to bring inflation back to the ECB’s price stability objective.

The next account is due to be released on Thursday, 8 October 2015.

Account of the monetary policy meeting
27/08/2015
Statistical press release: Monetary developments in the euro area
19/08/2015
Statistical press release: Euro area monthly balance of payments (June 2015)
18/08/2015
Statistical press release: Euro area investment fund statistics - Q2 2015
13/08/2015
Account of the monetary policy meeting
of the Governing Council of the European Central Bank, 
held in Frankfurt am Main on Wednesday and Thursday, 15-16 July 2015
12/08/2015
Statistical press release: Euro area securities issues statistics
07/08/2015
Decisions taken by the Governing Council of the ECB (in addition to decisions setting interest rates)
August 2015
31/07/2015
Statistical press release: MFI interest rate statistics
27/07/2015
Statement by the European Commission, the ECB and the IMF on Cyprus
23/07/2015
ECB and partners sign memorandum of understanding on new €20 banknote
22/07/2015
New breakdowns of monetary and financial statistics

All press releases

27/08/2015
Benoît Cœuré:  Drawing lessons from the crisis for the future of the euro area
Speech by Benoît Cœuré, Member of the Executive Board of the ECB, 
at “Ambassadors Week”, 
Paris, 27 August 2015
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25/08/2015
Vítor Constâncio:  Assessing the new phase of unconventional monetary policy at the ECB
Panel remarks prepared by Vítor Constâncio, Vice-President of the ECB, 
at the Annual Congress of the European Economic Association 
University of Mannheim, 25 August 2015
16/07/2015
Mario Draghi:  Introductory statement to the press conference (with Q&A)
Mario Draghi, President of the ECB, 
Vítor Constâncio, Vice-President of the ECB, 
Frankfurt am Main, 16 July 2015
14/07/2015
Yves Mersch:  Ways towards more dynamic growth
Speech by Yves Mersch, Member of the Executive Board of the ECB, 
at the DZ BANK Kapitalmarktkonferenz 2015, Frankfurt, 14 July 2015
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03/07/2015
Vítor Constâncio:  Strengthening macroprudential policy in Europe
Speech by Vítor Constâncio, Vice-President of the ECB, 
at the Conference on “The macroprudential toolkit in Europe and credit flow restrictions”, organised by Lietuvos Bankas, 
Vilnius, 3 July 2015

Summary

Strengthening macroprudential policy in Europe

Speech by Vítor Constâncio, Vice-President of the ECB,
at the Conference on “The macroprudential toolkit in Europe and credit flow restrictions”, organised by Lietuvos Bankas,
Vilnius, 3 July 2015

The current euro area environment, with policy rates required to stay low for a prolonged period of time and an apparent disconnect between the business and financial cycle, clearly points to a situation where monetary policy cannot deviate from price stability objectives to influence the financial cycle. This is the task of macroprudential policy. While acknowledged in principle, this fact has not yet been fully reflected in our policy frameworks.

Two major moves are required. First, macroprudential policy must place greater emphasis on preventing large fluctuations in the financial cycle, rather than simply increasing resilience to shocks when they occur. In addition to the bank-side capital based measures enhancing banks’ resilience, borrower-based instruments (such as LTVs or DSTIs), which have proved to be more effective in curtailing excessive credit growth, and are also applicable in a time-varying fashion, should gain more prominence. In particular, borrower-based measures should be properly embedded in European legislation, which is not the case at present. Second, a broader macroprudential toolkit is needed to address risks stemming from the shadow banking sector due to its increasing role in credit intermediation. This could involve measures such as redemption gates and loading fees to provide additional safeguards. Guided stress tests can provide comparable assessments of the health of individual institutions and of the resilience of the financial system as a whole. Appropriate policy responses to mitigate growing risks need however to be calibrated, in order to ensure a contained impact on credit supply to the real economy.

All speeches

14/08/2015
Benoît Cœuré:  Interview with Börsen-Zeitung
Interview of Benoît Cœuré, Member of the Executive Board of the ECB, 
conducted by Mark Schrörs of Börsen-Zeitung and published on 15 August 2015
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27/07/2015
Benoît Cœuré:  Interview with Le Monde
Interview of Benoît Cœuré, Member of the Executive Board of the ECB, 
conducted by Marie Charrel of Le Monde and published on 27 July 2015
29/06/2015
Benoît Cœuré:  Interview with Les Echos
Interview with Benoît Cœuré, Member of the Executive Board of the ECB, 
conducted by Nicolas Barré, Catherine Chatignoux, Jean-Philippe Lacour, Etienne Lefebvre, Guillaume Maujean, Dominique Seux and François Vidal, Les Echos, on 29 June 2015.
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13/06/2015
Peter Praet:  Interview with der Standard
Interview with Peter Praet, Member of the Executive Board of the ECB, and der Standard, conducted by Andras Szigètvari on 10 June 2015
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10/06/2015
Benoît Cœuré:  Interview with La Croix
Interview with Benoît Cœuré, Member of the Executive Board of the ECB, 
conducted by Marie Dancer, La Croix, 10 June 2015
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All interviews

25/08/2015
Report of the ESCB on the need for any measure to facilitate the access of CCPs to central bank liquidity facilities
25/08/2015
Working paper no. 1844: Domestic and multilateral effects of capital controls in emerging markets, by Martin Bijsterbosch, Matteo Falagiarda, et al.
24/08/2015
Working paper no. 1843: Debt overhang and deleveraging in the US household sector: gauging the impact on consumption, by Bruno Albuquerque, Georgi Krustev
24/08/2015
Working paper no. 1842: The real effects of credit constraints: evidence from discouraged borrowers in the euro area, by Annalisa Ferrando, Klaas Mulier
21/08/2015
Working paper no. 1841: Inattention to rare events, by Bartosz Maćkowiak, Mirko Wiederholt

All publications

11/08/2015
Opinion on amendments to constitutional law and the Law on Česká národní banka (CON/2015/28)
Czech Republic, 
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10/08/2015
Opinion on the use of an integrated data model for reporting data to the Oesterreichische Nationalbank (CON/2015/27)
Austria, 
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05/08/2015
Opinion on a draft law on specific terms of restructuring of home loans denominated in foreign currency (CON/2015/26)
Poland, 
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20/07/2015
Opinion on recovery and resolution of credit institutions and investment firms (CON/2015/25)
Greece, 
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15/07/2015
Opinion on amendments to the law on the Hellenic Statistical System and the Hellenic Statistical Authority (CON/2015/24)
Greece, 
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All legal acts

19 August 2015RESEARCH

Using big data to forecast GDP growth

Electronic payment transactions and cheques can be used to formulate “nowcasts” of current gross domestic product growth for policy-makers. This paper assesses the technique and finds that debit card transactions contribute most to forecast accuracy.

Statistics Paper No 10: Nowcasting GDP with electronic payments data
EXPLAINERS

What is monetary policy?

Why does monetary policy matter? Because it has a direct impact on interest rates and an indirect impact on inflation, the economy and employment.

Interest rates

Marginal lending facility 0.30 %
Main refinancing operations (fixed rate) 0.05 %
Deposit facility − 0.20 %
Effective from 10 September 2014

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