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)

2022-07-21 (the source gives a date only)

First seen on Kresmion

2026-10-27 00:06 UTC

The original

Link not checked yet: one check due 2026-11-26 (the source published this record more than 7 days before Kresmion first saw it).

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 Jul 21, 2022

What changed since Jun 9, 202271.7% of words changed774 words removed, 561 added

removedadded

• removed: High inflation is a major challenge for all of us. The added: Today, in line with the Governing Council’s strong commitment to its price stability mandate, the Governing Council removed: will added: took further key steps to make sure removed: that inflation returns to its 2% target over the medium term. removed: In May inflation again rose significantly, mainly because of surging energy and food prices, including due to the impact of the war. But inflation pressures have broadened and intensified, with prices for many goods and services increasing strongly. Eurosystem staff have revised their baseline inflation projections up significantly. These projections indicate that inflation will remain undesirably elevated for some time. However, moderating energy costs, the easing of supply disruptions related to the pandemic and the normalisation of monetary policy are expected to lead to a decline in inflation. The removed: new staff projections foresee annual inflation at 6.8% in 2022, before it is projected to decline to 3.5% in 2023 and 2.1% in 2024 – higher than in the March projections. This means that headline inflation at the end of the projection horizon is projected to be slightly above the Governing Council’s target. Inflation excluding energy and food is projected to average 3.3% in 2022, 2.8% in 2023 and 2.3% in 2024 – also above the March projections. Russia’s unjustified aggression towards Ukraine continues to weigh on the economy in Europe and beyond. It is disrupting trade, is leading to shortages of materials, and is contributing to high energy and commodity prices. These factors will continue to weigh on confidence and dampen growth, especially in the near term. However, the conditions are in place for the economy to continue to grow on account of the ongoing reopening of the economy, a strong labour market, fiscal support and savings built up during the pandemic. Once current headwinds abate, economic activity is expected to pick up again. This outlook is broadly reflected in the Eurosystem staff projections, which foresee annual real GDP growth at 2.8% in 2022, 2.1% in 2023 and 2.1% in 2024. Compared with the March projections, the outlook has been revised down significantly for 2022 and 2023, while for 2024 it has been revised up. On the basis of its updated assessment, the Governing Council decided to added: raise the three key ECB interest rates by 50 basis points and approved the Transmission Protection Instrument (TPI). The Governing Council judged that it is appropriate to take removed: further steps in normalising added: a larger first step on its added: policy rate normalisation path than signalled at its previous meeting. This decision is based on the Governing Council’s updated assessment of inflation risks and the reinforced support provided by the TPI for the effective transmission of monetary policy. removed: Throughout this process, added: It will support the return of inflation to the Governing Council’s medium-term target by strengthening the anchoring of inflation expectations and by ensuring that demand conditions adjust to deliver its inflation target in the medium term. At the Governing Council’s upcoming meetings, further normalisation of interest rates will be appropriate. The frontloading today of the exit from negative interest rates allows the Governing Council to make a transition to a meeting-by-meeting approach to interest rate decisions. The Governing Council’s future policy rate path will continue to be data-dependent and will help to deliver on its 2% inflation target over the medium term. In the context of its policy normalisation, the Governing Council will removed: maintain optionality, data-dependence, gradualism and flexibility in added: evaluate options for remunerating excess liquidity holdings. The Governing Council assessed that the removed: conduct added: establishment of the TPI is necessary to support the effective transmission of monetary policy. added: In particular, as the Governing Council continues normalising monetary policy, the TPI will ensure that the monetary policy stance is transmitted smoothly across all euro area countries. The singleness of the Governing Council’s monetary policy is a precondition for the ECB to be able to deliver on its price stability mandate. The TPI will be an addition to the Governing Council’s toolkit and can be activated to counter unwarranted, disorderly market dynamics that pose a serious threat to the transmission of monetary policy across the euro area. The scale of TPI purchases depends on the severity of the risks facing policy transmission. Purchases are not restricted ex ante. By safeguarding the transmission mechanism, the TPI will allow the Governing Council to more effectively deliver on its price stability mandate. In any event, the flexibility in reinvestments of redemptions coming due in the pandemic emergency purchase programme (PEPP) portfolio remains the first line of defence to counter risks to the transmission mechanism related to the pandemic. The details of the TPI are described in a separate press release to be published at 15:45 CET. Key ECB interest rates The Governing Council decided to raise the three key ECB interest rates by 50 basis points. Accordingly, the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will be increased to 0.50%, 0.75% and 0.00% respectively, with effect from 27 July 2022. At the Governing Council’s upcoming meetings, further normalisation of interest rates will be appropriate. The frontloading today of the exit from negative interest rates allows the Governing Council to make a transition to a meeting-by-meeting approach to interest rate decisions. The Governing Council’s future policy rate path will continue to be data-dependent and will help to deliver on its 2% inflation target over the medium term. Asset purchase programme (APP) and pandemic emergency purchase programme (PEPP) removed: The Governing Council decided to end net asset purchases under its asset purchase programme (APP) as of 1 July 2022. The Governing Council intends to continue ...
• ... monetary policy stance. As concerns the removed: pandemic emergency purchase programme (PEPP), added: PEPP, the Governing Council intends to reinvest ...
• ... with the appropriate monetary policy stance. removed: In added: Redemptions coming due in the removed: event of renewed market fragmentation related added: PEPP portfolio are being reinvested flexibly, with a view to countering risks to the removed: 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 removed: of monetary policy to the Greek economy while it is still recovering from the fallout from the pandemic. Net purchases under the PEPP could also be resumed, if necessary, to counter negative shocks added: mechanism related to the pandemic. removed: Key ECB interest rates The Governing Council undertook a careful review of the conditions which, according to its forward guidance, should be satisfied before it starts raising the key ECB interest rates. As a result of this assessment, the Governing Council concluded that those conditions have been satisfied. Accordingly, and in line with the Governing Council’s policy sequencing, the Governing Council intends to raise the key ECB interest rates by 25 basis points at its July monetary policy meeting. In the meantime, the Governing Council decided to leave the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility unchanged at 0.00%, 0.25% and -0.50% respectively. Looking further ahead, the Governing Council expects to raise the key ECB interest rates again in September. The calibration of this rate increase will depend on the updated medium-term inflation outlook. If the medium-term inflation outlook persists or deteriorates, a larger increment will be appropriate at the September meeting. Beyond September, based on its current assessment, the Governing Council anticipates that a gradual but sustained path of further increases in interest rates will be appropriate. In line with the Governing Council’s commitment to its 2% medium-term target, the pace at which the Governing Council adjusts its monetary policy will depend on the incoming data and how it assesses inflation to develop in the medium term. Refinancing operations The Governing Council will ...
• ... contributing to its monetary policy stance. removed: As announced previously, the special conditions applicable under TLTRO III will end on 23 June 2022. *** The Governing Council stands ready to adjust all of its removed: instruments, incorporating flexibility if warranted, added: instruments within its mandate to ensure that inflation stabilises at ...
• ... target over the medium term. The removed: pandemic has shown that, under stressed conditions, flexibility in added: Governing Council’s new TPI will safeguard the removed: design and conduct of asset purchases has helped to counter the impaired added: smooth transmission of added: its monetary policy removed: and made added: stance throughout the removed: Governing Council’s efforts to achieve its goal more effective. Within the ECB’s mandate, under stressed conditions, flexibility will remain an element of monetary policy whenever threats to monetary policy transmission jeopardise the attainment of price stability. added: euro area. The President of the ECB will ...
• ... at a press conference starting at removed: 14:30 added: 14:45 CET today.

Kresmion's comparison of the two published texts: a word-by-word diff of the European Central Bank's decision release of Jul 21, 2022 against its decision release of Jun 9, 2022, 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, Jun 9, 2022