Sign in to make your opinion count. What I tried to do when describing for you what we were already doing was to show that, while we might not be ahead of the curve yet, we are not sitting on our bottom doing nothing. The implementation of structural policies in euro area countries needs to be substantially stepped up to boost euro area productivity and growth potential, reduce structural unemployment and increase resilience. Like this video? Have we alerted sufficiently the private sector operators to themselves take the right measures? We cannot operate as we did back in 2003 – which doesn't mean to say that we have to necessarily change this, that or the other. Here is the full transcript of Draghi's ECB press conference. The second question was how you view negative rates compared with QE as a stimulus tool. That in and of itself has a variety of consequences. Isn't that going to be a distraction? Yet, markets were not impressed and Bund yields rose somewhat as Draghi spoke. Growth was higher because of that so that's a very, very strong argument to explain why monetary policy had to be what it is. President Lagarde, you've said before that the review will last until the end of the year. Maybe more generally, do we need eight pressers per year, because a lot of analysts think, when you see the previews of the analysts, it is often no change, no change, no change for this year. I think it touches on your first point: my commitment was really to be able to listen to the expectations of the people, to better understand their economic concerns and their imperatives, and how we can deliver on them. You can assess the value of collateral in order to determine what is the risk associated with collaterals and so on and so forth. Home›Media› Press conferences. Every region and every country has its idiosyncrasies and rationale. Once your request has been assessed, you will be contacted by email with follow up instructions. Don't like this video? Let me now explain our assessment in greater detail, starting with the economic analysis. 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. Firstly, trade seems to be the order of the day or the order of the week. 3,222 views. Introductory statement by Andrea Enria, Chair of the Supervisory Board of the ECB . Multiple views will be proposed. What does that mean concretely? Vacancies; Who we are. We will see whether next year or the year after and so on and so forth, whether we need to reorganise a timetable, but at this point in time, frankly I think it would've been unwarranted, to say the least, to change anything. PRESS CONFERENCE - Transcript of the questions asked and the answers given by Dr. Willem F. Duisenberg, President of the ECB, and Christian Noyer, Vice-President of the ECB, 2 May. 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. In addition, the ECB has what are known as secondary objectives. Further details about the scope and timetable of the review will be published in a press release today at 15:30 CET. 10 6. How important is it for you to reach unanimity or broad consensus in important monetary policy decisions? Turning to the monetary analysis, broad money (M3) growth stood at 5.6% in November 2019, broadly unchanged since August. We will now report on the outcome of today’s meeting of the Governing Council. 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. President Lagarde: It's difficult to disagree with that finding of the BIS, that climate change is actually a threat to financial stability. We will look at that and see how we can play a role in accordance with our mandate, indeed. There are multiple views around the table on multiple aspects of monetary policies. Navigation Path: Home›Media›Press conferences›23 January 2020, Jump to the transcript of the questions and answers. Does that seem more or less likely since the start of the year? Like this video? In order to reap the full benefits from our monetary policy measures, other policy areas must contribute more decisively to raising the longer-term growth potential, supporting aggregate demand at the current juncture and reducing vulnerabilities. I was personally very pleased to see that the private sector is actually also taking action in that respect, and certainly would welcome the involvement of other operators including their accounting firms and those that are setting the international accounting standards as well as the large asset managers, as we've seen. Weak modal words; Moderate modal words; Uncertainty words; Introductory statement . Speakers: Kristalina Georgieva, IMF Managing Director Alfred Kammer, IMF European Director Speakers: Gerry Rice, IMF Communications Director Opening Remarks: Ms. Georgieva: Our task today is to share with you the assessment of the economic outlook of the euro area together with our policy advice. 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. The press conference can be watched live at 14:30 CET and on demand shortly after. Modify your profile. There are great conferences and great seminars to attend. We will be different because 19 member states do not all speak the same language. It's right in there; second bullet point. Altogether that's roughly – that's a little over €20 billion. Get an overview of what the European Central Bank does and how it operates. We have good reason to believe that this is so. I wondered if you had had a chance to look at it and if you had any reaction to it. That came on the top of the selective exclusion and proxy voting guidelines that have already been in place for much longer than me. In addition to that, there is work also that is ongoing in various departments at the ECB to make sure that the climate risk is actually embedded in the work that they do in terms of risk assessment, in terms of models, in terms of their forecast. Date: 2012-08-02. That will continue to inspire the policy decisions that are made until a strategy has been adopted – which is a while from now but I'm sure you'll have questions about the strategy. But we need to look at it and we need to understand. There were some Governing Council members that were a little bit sceptical about the effectiveness, the benefit, the justification of the tiering. Was there a discussion as to whether it was closer to balance than it was tilted to the downside, but less skewed than it was? That's my personal take on that and I was very pleased to see that the environmental sustainability has found its right space in the monetary policy review that we are embarking upon. I am not suggesting that I would sort of give you the ECB doxa on this matter. As you know, there is only a portion of that which is in corporate asset purchases. Weak modal words; Moderate modal words; Uncertainty words; Introductory statement. One more question for the climate change in Davos. To do this, we use the anonymous data provided by cookies. The one announcement you are doing today is; yes, we will launch a new strategy. What do you think about the prospects of a potential trade war between the US and the EU? December, in my view, would be the probable date for the conclusion and the communication of our strategy. If you are a journalist and wish to attend the ECB press conference, send an email to media@ecb.europa.eu at least 10 working days prior to the event. Reproduction is permitted provided that the source is acknowledged. But it is also going to be our task and our goal to listen. 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. In particular, the weakness in the manufacturing sector remains a drag on euro area growth momentum. 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. When I say it will be over when it is over, what it means is that in the meantime, irrespective of our deliberations, our consideration, or engagement with academics, with economists, with civil society, with European parliament and so on and so forth, irrespective of all that – which will progress in parallel and will keep a lot of people busy both here in Frankfurt and in the 19 national central banks – we will conduct the same usual exercise of monitoring, analysing, drawing conclusion about the macroeconomic situation, about the monetary situation, about the markets, because we look at that as well. Weak modal words; Moderate modal words; Uncertainty words ; Introductory statement. But when something as important as our Governing Council meeting is scheduled, I don't see any reason why we would change it. That's the primary one. I think one critical development since our last meeting in late December has been the conclusion of phase one of the negotiations between US and China. Transcript: Euro Area Press Conference. 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. A similar question: would it be not accurate to skip the January presser so you and the members of the Governing Council will have more time to spend in Davos and then meet the elite and the VIPs of the world? ECB press conference transcript with highlighted dictionary words. Let me first report that the Governing Council decided to reconfirm the existing reference value for monetary growth, namely an annual growth rate of 4 1/2% for the broad aggregate M3. Date: 2001-07-05. Then a question on the risks: you said that the risks remain tilted to the downside, but less so; was there some discussion about maybe saying that risks are now balanced? That's point number one. What kind of things do you have in mind? At the World Economic Forum, President of the Commission, Ursula von der Leyen, said how important the fight for Europe against climate change is. Ladies and gentlemen, the Vice-President and I are very pleased to welcome you to our press conference. 05/05/2020 Andrea Enria: Public hearing at the European Parliament’s Economic and Monetary Affairs Committee. Discover euro banknotes and their security features and find out more about the euro. 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. Should they buy shares, real estate, or should they spend their money? In particular, easier borrowing conditions for firms and households are supporting consumer spending and business investment. I'm concerned about low rate, because low rate is predicated on low growth, and I would much rather have much higher growth, higher rates. That was a bit of a long-winded one but you had three questions in one, so it had to be long. The first one is to underline that the comprehensive assessment has unique features. How can this strategic review address this fundamental shift? It is more of a personal view, if I may say, because it has not been debated in the Governing Council. Could you maybe explain right now in simple words to these people; why is it so important to review a strategy, because maybe it's not very evident for them to understand this long-distance exercise? I think it would be largely unfair to the strategy review exercise that we are embarking upon as of today. Discover euro banknotes and their security features and find out more about the euro. Discover more about working at the ECB and apply for vacancies. The main takeaway I think was that climate change is a threat to financial stability. Dig deeper into the ECB’s activities and discover key topics in simple words and through multimedia. PRESS CONFERENCE Christine Lagarde, President of the ECB, Luis de Guindos, Vice-President of the ECB, Frankfurt am Main, 23 January 2020. I just came out … To sum up, a cross-check of the outcome of the economic analysis with the signals coming from the monetary analysis confirmed that an ample degree of monetary accommodation is still necessary for the continued robust convergence of inflation to levels that are below, but close to, 2% over the medium term. This is something that our teams are looking at very carefully to assess exactly what will be the impact on the net basis for the euro area. Over the medium term, inflation is expected to increase, supported by our monetary policy measures, the ongoing economic expansion and solid wage growth. When you were Managing Director of IMF, the world was waiting at your verdict on global growth at the opening of Davos. Then we will draw our conclusions, which will be independent from the strategy review that we're conducting separately. In other words, would it wait to adjust the corporate bond purchase programme until the strategy review has reached some kind of conclusion? 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. Yesterday’s press conference of ECB president Mario Draghi was rich in messages, but the most important one was the following: the Governing Council is concerned that inflation will continue to fail to sufficiently converge to its target and hence will do whatever is necessary to achieve its objective. I don’t think that applies at present. I don't think I'm disclosing any secret, because at the time, some of you commented about it. First of all, we have as you know an ECB staff pension fund and I'm looking at my paper because I don't want to give you anything that is wrong. To do this, we use the anonymous data provided by cookies. Find out how the ECB promotes safe and efficient payment and settlement systems, and helps to integrate the infrastructure for European markets. Ladies and gentlemen, the Vice-President and I are very pleased to welcome you to our press conference. 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. 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. That will determine which kind of instrument we want to use. Benefits & rewards; Contract types. The narrow monetary aggregate M1 continues to be the main contributor to broad money growth on the components side. 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. I don't think that it is sparing alternative views. Euro area real GDP increased by 0.3%, quarter on quarter, in the third quarter of 2019, following growth of 0.2% in the second quarter. Euro area annual HICP inflation increased to 1.3% in December 2019, from 1.0% in November, reflecting mainly higher energy price inflation. At the end of the day, and at the end of the process, we still have to complete the introductory statement and release the monetary policy decision if and when it is expected and required. Improving the functioning of Economic and Monetary Union remains a priority. Weak modal words; Moderate modal words; Uncertainty words; Introductory statement. My second question is about tiering, especially since the next reserve maintenance period is in six days. Webcasts of ECB press conferences. On that word, I think in accordance with our mandate indeed we have to stop the exercise, it's perfect timing. Today was the release of the interest rates for the EU and the Press Conference from the ECB. Date: 2003-07-10. Are they concerns that you share, that negative rates have been in place for five years already and could be in place for years into the future? Let me tell you what we already do, because it's not as if it's a newborn baby because I arrive; quite a lot had already been undertaken. It will be the same each year; the calendar is like it is. We reinvest as instruments come to maturity. Look at press releases, speeches and interviews and filter them by date, speaker or activity. 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. Browse the ECB’s reports, publications and research papers and filter them by date or activity. We will look as part of the strategy review at what options we have to be even more intrusive, more active in relation to the corporate purchase plan that we have in place, and which continues to operate, as you know, because we are purchasers on a monthly basis of €20 billion. You very gently nudged me into having a view as to whether there should be a band, as to whether there should be this, that or the other. 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. Learn more about how we use cookies, We are always working to improve this website for our users. I have another climate change question. Key figures and latest releases at a glance. June 25, 2020. Was that discussed again today? I wonder if you agree with that premise. The incoming data since our last meeting are in line with our baseline scenario of ongoing, but moderate, growth of the euro area economy. Our expectation at this point is that it will take a year. We also have, together with the European Systemic Risk Board, a pilot framework that is under review as well and which should be completed as well in the fall of 2020. Assuming that that's still the valid assumption, how do you plan to mitigate risk in the interim about creating uncertainty over the ECB's policy, since the policy implications of the review are not yet clear? 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. Question: Mr. Duisenberg, among the risks for economic recovery you mentioned existing imbalances elsewhere. 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What yardsticks do you think personally should be assessed first for their relevance in today's era? You asked me another one? I'm also curious about your view on the suggestion of creating a target band around two per cent. Learn more about how we use cookies, We are always working to improve this website for our users. I draw a line between consensus building and repressing alternative views, and I can assure you that we are not short of alternative views, right? However, ongoing, albeit decelerating, employment growth and increasing wages continue to support the resilience of the euro area economy. We also intend to continue reinvesting, in full, the principal payments from maturing securities purchased under the APP for an extended period of time past the date when we start raising the key ECB interest rates, and in any case for as long as necessary to maintain favourable liquidity conditions and an ample degree of monetary accommodation. 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ecb press conference transcript

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