Monetary policy decisions

The record

Publisher

European Central Bank

Agency

Governing Council

Source

European Central Bank

Kind

Release

Jurisdiction

European Union

Topics

Monetary policy

Importance

Headline, the top of three tiers Kresmion sets by fixed rules from the source's own fields

Published (source time)

2021-12-16 (the source gives a date only)

First seen on Kresmion

2026-10-27 00:06 UTC

The original

Source: European Central Bank (ecb.europa.eu), reproduced as published. The text may be obtained free of charge on the ECB's website.

What changed

ECB monetary policy decisions, meeting of Dec 16, 2021

What changed since Oct 28, 202171.9% of words changed467 words removed, 603 added

removedadded

• The Governing Council removed: continues to judge added: judges that removed: favourable financing conditions can be maintained with added: the progress on economic recovery and towards its medium-term inflation target permits a removed: moderately lower added: step-by-step reduction in the pace of added: its asset purchases over the coming quarters. But monetary accommodation is still needed for inflation to stabilise at the 2% inflation target over the medium term. In view of the current uncertainty, the Governing Council needs to maintain flexibility and optionality in the conduct of monetary policy. With this is mind, the Governing Council took the following decisions: Pandemic emergency purchase programme (PEPP) In the first quarter of 2022, the Governing Council expects to conduct net asset purchases under the removed: pandemic emergency purchase programme (PEPP) added: PEPP at a lower pace than in the removed: second and third quarters added: previous quarter. It will discontinue net asset purchases under the PEPP at the end of removed: this year. added: March 2022. The Governing Council removed: also confirmed its other measures, namely added: decided to extend the removed: level added: reinvestment horizon for the PEPP. It now intends to reinvest the principal payments from maturing securities purchased under the PEPP until at least the end of 2024. In any case, the future roll-off of the removed: key ECB interest rates, its forward guidance on their likely future evolution, its added: PEPP portfolio will be managed to avoid interference with the appropriate monetary policy stance. The pandemic has shown that, under stressed conditions, flexibility in the design and conduct of asset purchases has helped to counter the impaired transmission of monetary policy and made efforts to achieve the Governing Council’s goal more effective. Within our mandate, under stressed conditions, flexibility will remain an element of monetary policy whenever threats to monetary policy transmission jeopardise the attainment of price stability. In particular, in the event of renewed market fragmentation related to the pandemic, PEPP reinvestments can be adjusted flexibly across time, asset classes and jurisdictions at any time. This could include purchasing bonds issued by the Hellenic Republic over and above rollovers of redemptions in order to avoid an interruption of purchases in that jurisdiction, which could impair the transmission of monetary policy to the Greek economy while it is still recovering from the fallout of the pandemic. Net purchases under the removed: asset purchase programme (APP), its reinvestment policies and its longer-term refinancing operations. Specifically: Key ECB interest rates The interest rate on added: PEPP could also be resumed, if necessary, to counter negative shocks related to the removed: main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.00%, 0.25% and -0.50% respectively. In support of its symmetric two per cent inflation target and in line with its monetary policy strategy, the Governing Council expects the key ECB interest rates to remain at their present or lower levels until it sees inflation reaching two per cent well ahead of the end of its projection horizon and durably for the rest of the projection horizon, and it judges that realised progress in underlying inflation is sufficiently advanced to be consistent with inflation stabilising at two per cent over the medium term. This may also imply a transitory period in which inflation is moderately above target. added: pandemic. Asset purchase programme (APP) removed: Net added: In line with a step-by-step reduction in asset purchases and to ensure that the monetary policy stance remains consistent with inflation stabilising at its target over the medium term, the Governing Council decided on a monthly net purchase pace of €40 billion in the second quarter and €30 billion in the third quarter under the APP. From October 2022 onwards, the Governing Council will maintain net asset purchases under the APP removed: will continue at a monthly pace of €20 removed: billion. The Governing Council continues to expect monthly net asset purchases under the APP to run added: billion for as long as necessary to ...
• ... the accommodative impact of its policy removed: rates, and added: rates. The Governing Council expects net purchases to end shortly before it starts ...
• ... an ample degree of monetary accommodation. removed: Pandemic emergency purchase programme (PEPP) added: Key ECB interest rates The added: interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.00%, 0.25% and -0.50% respectively. In support of its symmetric 2% inflation target and in line with its monetary policy strategy, the Governing Council removed: will continue added: expects the key ECB interest rates to removed: conduct net asset purchases under the PEPP with a total envelope added: remain at their present or lower levels until it sees inflation reaching 2% well ahead of removed: €1,850 billion until at least the end of removed: March 2022 and, in any case, until added: its projection horizon and durably for the rest of the projection horizon, and it judges that removed: the coronavirus crisis phase added: realised progress in underlying inflation is removed: over. The Governing Council continues added: sufficiently advanced to removed: judge that favourable financing conditions can be removed: maintained added: consistent with removed: a moderately lower pace of net asset purchases under the PEPP than in the second and third quarters of this year. The Governing Council will purchase flexibly according to market conditions and with a view to preventing a tightening of financing conditions that is inconsistent with countering the downward impact of the pandemic on the projected path of inflation. In addition, the flexibility of purchases over time, across asset classes and among jurisdictions will continue to support the smooth transmission of monetary policy. If favourable financing conditions can be maintained with asset purchase flows that do not exhaust the envelope added: inflation stabilising at 2% over the removed: net purchase horizon of the PEPP, the envelope need not be used added: medium term. This may also imply a transitory period in removed: full. Equally, the envelope can be recalibrated if required to maintain favourable financing conditions to help counter the negative pandemic shock to the path of inflation. The Governing Council will continue to reinvest the principal payments from maturing securities purchased under the PEPP until at least the end of 2023. In any case, the future roll-off of the PEPP portfolio will be managed to avoid interference with the appropriate monetary policy stance. added: which inflation is moderately above target. Refinancing operations The Governing Council will continue to removed: provide ample liquidity through its refinancing operations. In particular, added: monitor bank funding conditions and ensure that the maturing of operations under the third series of targeted longer-term refinancing operations (TLTRO III) removed: remains added: does not hamper the smooth transmission of its monetary policy. The Governing Council will also regularly assess how targeted lending operations are contributing to its monetary policy stance. As announced, it expects the special conditions applicable under TLTRO III to end in June next year. The Governing Council will also assess the appropriate calibration of its two-tier system for reserve remuneration so that the negative interest rate policy does not limit banks’ intermediation capacity in an removed: attractive source added: environment of removed: funding for banks, supporting bank lending to firms and households. added: ample excess liquidity. *** The Governing Council stands ready ...
• ... adjust all of its instruments, as removed: appropriate, added: appropriate and in either direction, to ensure that inflation stabilises at its removed: two per cent added: 2% target over the medium term. The ...

Kresmion's comparison of the two published texts: a word-by-word diff of the European Central Bank's decision release of Dec 16, 2021 against its decision release of Oct 28, 2021, computed by Kresmion, not by the European Central Bank.

This redline modifies the ECB's published texts: the marks are Kresmion's. Both texts as published are available free of charge on the ECB's website (ecb.europa.eu).

Source: European Central Bank (ecb.europa.eu), reproduced as published. The text may be obtained free of charge on the ECB's website.

• The previous decision release, Oct 28, 2021