Euro area annual HICP inflation increased to 1.3% in December 2019, from 1.0% in November, reflecting mainly higher energy price inflation. You can assess the value of collateral in order to determine what is the risk associated with collaterals and so on and so forth. ECB press conference transcript with highlighted dictionary words. The second question was how you view negative rates compared with QE as a stimulus tool. November 30, 2020. Thu 14 Dec 2017 22:55:55 GMT. While the annual growth rate of loans to households remained unchanged from October, at 3.5% in November, the annual growth rate of loans to non-financial corporations moderated to 3.4% in November, from 3.8% in October, likely reflecting some lagged reaction to the past weakening in the economy. Read about the ECB’s monetary policy instruments and see the latest data on its open market operations. In countries where public debt is high, governments need to pursue prudent policies and meet structural balance targets, which will create the conditions for automatic stabilisers to operate freely. President Lagarde: On climate change, what I said, I say and I will continue to say is that it is everybody's responsibility, wherever he or she is, to see what he or she can actually do to fight climate change and protect biodiversity. Dig deeper into the ECB’s activities and discover key topics in simple words and through multimedia. I would refer you to an excellent speech that Benoît Cœuré had given back about six or eight months ago about these topics. Yes, there are very interesting phenomena going on in the world. The incoming data since our last meeting are in line with our baseline scenario of ongoing, but moderate, growth of the euro area economy. Why should it be the role of central banks? Based on our regular economic and monetary analyses, we decided to keep the key ECB interest rates unchanged, following the decrease of 25 basis points in July. President Lagarde, a question about the inflation target. Sign up to receive free e-mail notices when new series and/or country items are posted on the IMF website. Don't forget that there was this high-level working group between the Bank of England and the ECB at the level of both President and Governor in order to make sure that they had checked all the boxes and covered the potential risks. Question: Mr. Duisenberg, among the risks for economic recovery you mentioned existing imbalances elsewhere. I think the overall view – I think it was unanimous, actually; I didn't hear anything to the contrary – the unanimous view is that the tiering system is operating extremely well. What kind of things do you have in mind? Like this video? I have a question on climate change, because you said early on that you want the ECB to play a pivotal role in fighting climate change, also during the strategy review, or including that in the strategy review. Then secondly, related question is: will the ECB wait for the strategic review before it incorporates any sustainability or climate change criteria into its monetary policy? Things are actually happening. I don't think I'm disclosing any secret, because at the time, some of you commented about it. I think that I have addressed that point earlier on by indicating that we have to use all the instruments that are available and that are proven to be effective – we will measure effectiveness, by the way – in order to deliver. If we believe that there is a clear miscalculation between what is there – which is roughly 6% of budget, if I recall – and what is the perception, we need to understand why. Clearly, the issue of housing and the distinction between the owner occupancy versus the non-owner occupancy, the reality and the perception, the difference between large urban centres and rural areas; all of that is infinitely difficult to apprehend and to calculate. This pattern of moderate growth reflects the ongoing weakness of international trade in an environment of continued global uncertainties, which has particularly affected the euro area manufacturing sector and has also dampened investment growth. Date: 2003-07-10. President Lagarde: You're completely right in that the situation has completely changed from 2003. More. How central do you expect this issue to be in this strategic review? That came on the top of the selective exclusion and proxy voting guidelines that have already been in place for much longer than me. Transcript; Add translations. The unfolding monetary policy measures are underpinning favourable financing conditions for all sectors of the economy. There is a lot going on and as you will see in the press release that you receive later on – in a very short while actually – you will see that environmental sustainability is captured very well in the description of our strategy review. My second question is on policy-making: brought consensus in the Governing Council has some obvious advantages. But since September or since it was decided and as of the effective date, as you know there was instant movement. Browse the ECB’s reports, publications and research papers and filter them by date or activity. There can always be a risk somewhere, but I think that in good conscience, we have looked at everything that we thought was necessary. What do you think about the prospects of a potential trade war between the US and the EU? My mission as President of the Governing Council is to harness all the views around and to make sure that we come to as close as possible a view that is shared by all, in order to have as consistent and as effective a monetary policy in order to deliver on our mandate. It may well be that we do not have unanimous decisions and that at some stage it will have to be a majority decision, but we need a decision. President Lagarde: I very strongly support the President of the Commission in that respect, and in many respects, for that matter. Secondly, I'd like to hear your reaction to Sweden ending its experiment with negative interest rates and whether you think that markets are assuming you don't have the potential to cut further, and they're signalling that the next rate rise will be upwards rather than downwards. Discover more about working at the ECB and apply for vacancies. That framework normally should be completed at the end of 2020 at the latest. It's been a reversal of the situation and requires in my view that we actually look at the strategy very carefully to see how effective we can be in view of the change of circumstances, some of which are structural factors that are here with us to stay. Discover euro banknotes and their security features and find out more about the euro. It seems that there's growing scepticism within the Governing Council about the side effects of having interest rates below zero for a long period of time. Sign in to make your opinion count. However, ongoing, albeit decelerating, employment growth and increasing wages continue to support the resilience of the euro area economy. As you have noted, in my introductory statement – and I don't differ from my predecessor on that front – I think having amplifiers of our monetary policy by having the right fiscal policy, be it by way of additional spending or reduced taxation, for those countries that have the space to do that would certainly help in that regard. You will see that as part of our strategy review, we are going to look at the potential side effects of the current circumstances, which are low rate – let alone negative – but we have had low rates for a period of time. We saw in the minutes from the last – from the December meeting, there was some discussion about this. In particular, easier borrowing conditions for firms and households are supporting consumer spending and business investment. Transcript of the Press Conference on the Release of the Global Financial Stability Report Update. I have a question on the strategy because at the beginning of your tenure you said, “I want to dust off the language of the Bank to help the citizens to understand what the Bank is for.” Now, most citizens, whether they are savers or borrowers, they have just one thing in mind; when will the ECB raise the rates? What would be your advice for German savers? Weak modal words; Moderate modal words; Uncertainty words; Introductory statement . Supervisory Board Chair Danièle Nouy and Vice-Chair Sabine Lautenschläger hold the annual press conference on ECB Banking Supervision to give an overview of progress and developments in … Andrea Enria: Transcript of the media briefing on June 9, 2020 (with Q&A) Andrea Enria, Chair of the Supervisory Board of the ECB, Frankfurt am Main, 9 June 2020. Transcript; Add translations. Looking ahead, the euro area expansion will continue to be supported by favourable financing conditions, further employment gains in conjunction with rising wages, the mildly expansionary euro area fiscal stance and the ongoing – albeit somewhat slower – growth in global activity. We will, therefore, closely monitor inflation developments and the impact of the unfolding monetary policy measures on the economy. It will be over when it is over. ECB Press Statement Comparison between February 2014 and March 2014. As a first step, we have decided to increase the share of green investment held in the portfolio, subject to availability and liquidity of such funds, of course. We are taking climate change into account in order to improve the way in which we operate at the moment. Modify your profile. On the basis of current futures prices for oil, headline inflation is likely to hover around current levels in the coming months. We have good reason to believe that this is so. Navigation Path: Home›Media›Press conferences›23 January 2020, Jump to the transcript of the questions and answers. I doubt it. We have a strategy that was defined and that has inspired the policy decisions that were made and that have been made up until this day. My second question is about tiering, especially since the next reserve maintenance period is in six days. Incoming economic data and survey information point to some stabilisation in euro area growth dynamics, with near-term growth expected to be similar to rates observed in previous quarters. There are multiple views around the table on multiple aspects of monetary policies. That resonates with those of you who know how the Fed has organised its “Fed Listens”. The first one is to underline that the comprehensive assessment has unique features. Webcasts of ECB press conferences. Get an overview of what the European Central Bank does and how it operates. Transcript of a Press Conference on Ireland. share. Don't like this video? Jump to the transcript of the questions and answers. Browse the press releases, speeches, interviews, reports and publications related to banking supervision and filter them by date, speaker or activity. If ECB’s engagement with the green and sustainable financial sector were necessary for maintaining price stability in the euro area, it would fall within the remit of our primary objective. For example, the Bank of England tried to have people in their monetary policy committee who challenged the existing views within the group. Slow growth: I think we'll cross that bridge when we have to cross that bridge, but as you also know, different tools apply to different portions of the yield curve. Or would it be considered too political? We will continue to benefit from the work of the researchers, of the top-notch economists, of the academics and, yes, their views will be harnessed at various events that will take place in the course of 2020. Now, the third step has to do with our monetary policy portfolio, which is much larger. Do you not fear that it will be difficult to deliver on that? The growth of loans to firms and households remained solid, benefiting from the ongoing support provided by our accommodative monetary policy stance, which is reflected in very low bank lending rates. The most popular tweet of the ECB seems to be its Season’s Greetings with a picture of its Christmas tree. I know that the President of the Commission will be visiting the United States in February. Read about the ECB’s monetary policy instruments and see the latest data on its open market operations. Two questions for you. I think on that, the strategy is going to have to review what it can – what the Bank can do, should do, how much it collides with the mandate. Are they correct in that assumption? It will involve all the national central banks, which will be also active participants in the process. But it might also have some disadvantages like group think or the ECB might be vulnerable for mistakes. Regarding fiscal policies, the euro area fiscal stance is expected to continue to provide some support to economic activity. Turning to the monetary analysis, broad money (M3) growth stood at 5.6% in November 2019, broadly unchanged since August. December, in my view, would be the probable date for the conclusion and the communication of our strategy. As I said very clearly I think in the introductory statement, the Governing Council is going to be very attentive to any and all developments in all directions, both in terms of growth but obviously in terms of inflation, which is our measurement of price stability, and will take whatever measures are necessary, as appropriate, in order to respond to our imperative to deliver on our mandate of price stability. President Lagarde: It's difficult to disagree with that finding of the BIS, that climate change is actually a threat to financial stability.