Wednesday , October 27 2021
Home / European Central Bank
European Central Bank

European Central Bank

Since 1 January 1999 the European Central Bank (ECB) has been responsible for conducting monetary policy for the euro area - the world’s largest economy after the United States.

Articles by European Central Bank

ECB announces members of Digital Euro Market Advisory Group

2 days ago

25 October 2021
ECB appoints 30 senior business professionals with proven experience
Members to advise Eurosystem on design and distribution of potential digital euro
Meetings of group to be held at least quarterly, starting in November 2021
The European Central Bank (ECB) has today announced the members of the Market Advisory Group for the digital euro project.
The Eurosystem’s High-Level Task Force on Central Bank Digital Currency called for expressions of interest on 14 July, following the Governing Council’s approval of the digital euro project investigation phase. After assessing applications, the selection committee appointed 30 senior business professionals with proven experience and a broad understanding of the euro area retail payments market.
“I am pleased that many

Read More »

Frank Elderson: Overcoming the tragedy of the horizon: requiring banks to translate 2050 targets into milestones

8 days ago

Keynote speech by Frank Elderson, Member of the Executive Board of the ECB and Vice-Chair of the Supervisory Board of the ECB, at the Financial Market Authority’s Supervisory Conference
Vienna, 20 October 2021
Introduction
It is a great pleasure for me to speak here and I would like to thank the organisers for inviting me.
Today, I want to look ahead – to next year, to the next five years and to the three decades up to 2050, the year by which the EU has pledged to become carbon neutral under the Paris Agreement. Thirty years is a hair’s breadth of time: merely one-hundred-and-fifty-millionth of the earth’s 4.5 billion years of existence. A brief span indeed.
There is no doubt that time is running out for us to tackle the climate and environmental crises. What does this mean for

Read More »

Fabio Panetta: “Hic sunt leones” – open research questions on the international dimension of central bank digital currencies

8 days ago

Speech by Fabio Panetta, Member of the Executive Board of the ECB, at the ECB-CEBRA conference on international aspects of digital currencies and fintech
Frankfurt am Main, 19 October 2021
It is a pleasure to welcome you on behalf of the European Central Bank (ECB) to the fifth annual meeting of the International Finance and Macroeconomics Program of the Central Bank Research Association (CEBRA). This year’s meeting is taking place virtually. And it brings together participants from nearly 20 time zones, which is fitting for a conference that seeks to shed light on how digitalisation is changing money and finance globally.
In my remarks today, I will focus on the international dimension of central bank digital currencies, or CBDCs. The ECB launched an investigation phase for the

Read More »

Frank Elderson: The role of supervisors and central banks in the climate crisis

8 days ago

Keynote speech by Frank Elderson, Member of the Executive Board of the ECB and Vice-Chair of the Supervisory Board of the ECB, at the 31st Lisbon meeting between the central banks of Portuguese-speaking countries
Frankfurt am Main, 19 October 2021
It is my great pleasure to be with you today on the occasion of the 31st Lisbon meeting between the central banks of Portuguese-speaking countries.
Today I would like to talk to you about the climate crisis and climate finance. Specifically, I would like to talk about the role that central banks and supervisors can and must play in leading by example and incorporating climate and environmental risks into our activities, both in a systematic manner and with a long-term perspective.
When preparing my remarks today, Fernando Pessoa’s poem “Mar

Read More »

Christine Lagarde: Globalisation after the pandemic

11 days ago

2021 Per Jacobsson Lecture by Christine Lagarde, President of the ECB, at the IMF Annual Meetings
IMF Annual Meetings, 16 October 2021
It is a pleasure to be back in Washington and to deliver this year’s Per Jacobsson Lecture.
As a young man in the 1920s, Jacobsson worked in the Economic and Financial Section of the League of Nations Secretariat. There, he was actively involved in work on Europe’s financial reconstruction in the wake of the greatest shock that had hit the continent: the First World War.
The outbreak of that conflict in 1914, which killed so many and injured even more, marked the end of the first era of globalisation. The unprecedented flows of trade that had characterised the global economy between the 1870s and the early 1900s collapsed, as borders were replaced by

Read More »

Christine Lagarde: IMFC Statement

13 days ago

Statement by Christine Lagarde, President of the ECB, at the forty-fourth meeting of the International Monetary and Financial Committee
IMF Annual Meetings, 14 October 2021
Global economic activity has continued to recover since our previous meeting in April this year, thanks to further progress in vaccination campaigns and supportive economic policies. However, the pace of the recovery remains uneven across sectors and countries, and the spread of the more contagious Delta variant of the coronavirus (COVID-19), coupled with supply bottlenecks, is casting a shadow over the near-term growth prospects for the global economy.
The main challenge for policymakers continues to be steering the economy safely out of the crisis. It remains crucial that policy support is not withdrawn

Read More »

Christine Lagarde: The contribution of finance to combating climate change

15 days ago

Speech by Christine Lagarde, President of the ECB, at the Finance at Countdown event
Frankfurt am Main, 12 October 2021
The urgent need to transition to carbon neutral
We have seen this summer what climate change can do in terms of disasters. We had floods in Europe, heatwaves in North America and elsewhere; there have been ample examples this year of what the world may look like in the future. And it might be worse. The prominence of climate change in the public debate shows that people are now sitting up and taking notice. To quote Honoré de Balzac, “It is easy to sit up and take notice. What is difficult is getting up and taking action”. This is now what we are seeing, and I take the view that everybody must take action, whatever their role, mission and position.
What we did at

Read More »

Philip R. Lane: The monetary policy toolbox and the effective lower bound

16 days ago

Welcome address by Philip R. Lane, Member of the Executive Board of the ECB, at the ECB Conference on Monetary Policy: bridging science and practice
Frankfurt am Main, 11 October 2021
It is a pleasure to welcome you to the 2021 edition of the annual ECB Conference on Monetary Policy. As captured in the title of this year’s event, this conference series serves a vital role in bridging the science and practice of monetary policy. In particular, it is essential for the ECB to incorporate in our analytical framework the theoretical and empirical insights generated by the global academic community, and the conference format (albeit in webinar mode again this year) is very effective in providing us with a platform to discuss the latest developments. The breadth of academic research (in

Read More »

Fabio Panetta: Stay safe at the intersection: the confluence of big techs and global stablecoins

19 days ago

Speech by Fabio Panetta, Member of the Executive Board of the ECB, at the panel on “Cross-border dimensions of non-bank financial intermediation: what are the priorities for building resilience globally?”, as part of the UK G7 Presidency Conference on “Safe Openness in Global Trade and Finance” hosted by the Bank of England
8 October 2021
In the years since the global financial crisis, non-bank financial intermediaries (NBFIs) have shown continuous growth, and now account for more than half of global financial assets.[1]
Although there are a variety of reasons for this development, one of the factors has been the stricter banking regulation adopted after the global financial crisis constraining the risk-taking of banks.[2] The regulatory reforms of the last decade have promoted

Read More »

Isabel Schnabel: Prospects for inflation: sneezes and breezes

20 days ago

Welcome address by Isabel Schnabel, Member of the Executive Board of the ECB, at the ECB and Federal Reserve Bank of Cleveland’s “Inflation: Drivers and Dynamics Conference 2021”
Frankfurt am Main, 7 October 2021
Introduction
Euro area headline inflation is expected to have reached 3.4% in September according to the most recent flash estimate, its highest annual rate in more than a decade and notably above the ECB’s new symmetric target of 2% to be attained over the medium term.[1]
The recent rise in inflation, which was at least partly expected, has intensified the debate about the most likely future evolution of price pressures – in the euro area and elsewhere. It stands in sharp contrast to the developments observed over the past decade when structural headwinds prevented

Read More »

Meeting of 8-9 September 2021

20 days ago

Account of the monetary policy meeting of the Governing Council of the European Central Bank held in Frankfurt am Main on Wednesday and Thursday, 8-9 September 2021
1. Review of financial, economic and monetary developments and policy options
Financial market developments
Ms Schnabel reviewed the financial market developments since the Governing Council’s previous monetary policy meeting on 21-22 July 2021.
The pronounced decline in ten-year US Treasury yields and euro area GDP-weighted sovereign yields observed just before the previous Governing Council meeting had proven persistent despite the ongoing recovery from the pandemic crisis. More recently, yields had been trending somewhat higher but, overall, they had not risen back to the levels seen during the last recovery in

Read More »

Christine Lagarde: Dynamic regions at the heart of a strong Europe

22 days ago

Speech by Christine Lagarde, President of the ECB, at Wirtschaftsinitiative FrankfurtRheinMain e.V.
Frankfurt am Main, 5 October 2021
First of all, let me warmly congratulate you on the 25th anniversary of Wirtschaftsinitiative.
Johann Wolfgang Goethe, the great son of Frankfurt, once famously said:
„Was nicht vorwärts gehen kann, das schreitet zurück.“
Today, as we exit the pandemic, we are finding a world much changed. The trend towards digitalisation has sped up hugely. Demand is shifting towards new activities and sectors. A faster green transition has become an imperative.
So Europe must move forward to avoid going backwards. And it can – in large part thanks to the dynamism and diversity of its metropolitan regions.
European regions – like FrankfurtRhineMain – can create a

Read More »

Isabel Schnabel: Lessons from an unusual crisis

26 days ago

Speech by Isabel Schnabel, Member of the Executive Board of the ECB, at the Federal Reserve Bank of New York conference on “Implications of Federal Reserve Actions in Response to the COVID-19 Pandemic”
1 October 2021
Introduction
The economic developments caused by the coronavirus (COVID-19) pandemic have been highly unusual.[1] After the deepest decline in output in the post-war period, the recovery was also much steeper than in other sharp recessions, such as the one after the global financial crisis.[2]
The comparably swift brightening of the economic outlook is in large part due to the decisive policy responses by both fiscal and monetary authorities, which were in many respects as unusual as the crisis itself. Even though the pandemic is not yet over, I would like to use my

Read More »

Fabio Panetta: Cyber risks and the integrity of digital finance

28 days ago

Introductory remarks by Fabio Panetta, Member of the Executive Board of the ECB, at the sixth meeting of the Euro Cyber Resilience Board for pan-European Financial Infrastructures (ECRB)
Frankfurt am Main, 30 September 2021
The pandemic is fundamentally changing how we work, how we conduct business, and even how we live and interact with one another. It is influencing how we pay for goods and services, accelerating the trend towards cashless and contactless payments.[1]
Throughout the pandemic, financial market infrastructures and their related ecosystem have supported the economy’s resilience and adapted to new needs. They have accompanied the digital transformation. This process will continue after the pandemic.
Central banks are playing an active role in this change. The ECB is

Read More »

Christine Lagarde: Monetary policy during an atypical recovery

29 days ago

Speech by Christine Lagarde, President of the ECB, at ECB Forum on Central Banking "Beyond the pandemic: the future of monetary policy"
Frankfurt am Main, 28 September 2021
The economy is back from the brink, but not completely out of the woods. After a highly unusual recession, the euro area is going through a highly atypical recovery.
This atypical recovery is leading to rapid growth, but also to supply bottlenecks appearing unusually early in the economic cycle. It is also causing inflation to rebound quickly as the economy reopens. And it is helping to accelerate pre-existing trends and new structural changes brought about by the pandemic, which could have implications for future inflation dynamics.
But it is important today to take a step back. To understand how monetary policy

Read More »

Christine Lagarde: Hearing of the Committee on Economic and Monetary Affairs of the European Parliament

September 27, 2021

Introductory statement by Christine Lagarde, President of the ECB, at the Hearing of the Committee on Economic and Monetary Affairs of the European Parliament (by videoconference)
Frankfurt am Main, 27 September 2021
Madam Chair,
Honourable members of the Economic and Monetary Affairs Committee,
Ladies and gentlemen,
It is a pleasure to be with you again today for the third regular hearing of the year.
In my confirmatory hearing before this Committee back in September 2019, I set out a goal: to ensure that the ECB engaged in a reflection on whether its monetary policy framework was sufficiently robust to meet future challenges.[1]
With the successful conclusion of our strategy review in July,[2] I believe we have achieved that goal. The review took the ECB’s mandate and primary

Read More »

Philip R. Lane: Structural change and central banking: some research priorities

September 24, 2021

Panel contribution by Philip R. Lane, Member of the Executive Board of the ECB, to the 5th Joint Regional Financing Arrangements Research Seminar organised by the European Stability Mechanism
Frankfurt am Main, 24 September 2021
Structural changes (especially digitalisation and the carbon transition) can be expected to be highly influential in driving macroeconomic outcomes over the next decade and are of first-order importance for central banks. In the European context, public policy is firmly geared to promoting a smooth and comprehensive digital and green transformation of the European economy, including through the design and funding of the Next Generation EU (NGEU) programme.
In the spirit of a research seminar, my aim today is to outline some issues that call for further

Read More »

Decisions taken by the Governing Council of the ECB (in addition to decisions setting interest rates)

September 24, 2021

August – September 2021
24 September 2021
External communication
Changes to the Governing Council meeting schedule for 2022 and to the frequency of external Governing Council meetings
On 20 September 2021 the Governing Council decided to cancel the monetary policy meeting originally planned for 20 January 2022 and the non-monetary policy meeting planned for 2 February 2022, instead scheduling a monetary policy meeting for 3 February 2022. Accordingly, the Governing Council adopted adjusted indicative calendars for the Eurosystem’s regular tender operations and reserve maintenance periods in 2022 (see below).
In addition, to emphasise its commitment to a greater interaction with civil societies of the euro area as shown during the recent listening events organised in the context of

Read More »

Christine Lagarde: Interview with CNBC

September 24, 2021

Interview with Christine Lagarde, President of the ECB, conducted by Annette Weisbach, CNBC, on 23 September
24 September 2021
Let me first ask you about your first two years, because it’s almost two years that you are now at the helm of the institution, so what have been the most challenging moments in that time?
It has been very different from what I had expected in the first place. I wasn’t expecting a walk in the park, but I was expecting something more quiet than what we had. The first thing that really hit our radar screen was the COVID crisis, where one country after the other locked down, stopped its activity, and where we had to respond extremely fast. Then I had certain issues with some national court that wanted to challenge the validity of what had been done. And I had

Read More »

Frank Elderson: Integrating the climate and environmental challenge into the missions of central banks and supervisors

September 23, 2021

Speech by Frank Elderson, Member of the Executive Board of the ECB and Vice-Chair of the Supervisory Board of the ECB, at the 8th Conference on the Banking Union, Goethe University, Frankfurt am Main
Frankfurt am Main, 23 September 2021
Many thanks for your kind introduction and for having me here today at this 8th Conference on the Banking Union. I am especially happy to be here, for this is the first time since I joined the European Central Bank last December that I am joining in a conference on site. It shows that we are indeed making progress in moving closer towards a world after the pandemic, which is the topic of this session of the conference. That being said, we are not there yet, and we are all certainly mindful of the many risks to global public health that currently still

Read More »

Firms and banks to benefit from early adoption of green policies, ECB’s economy-wide climate stress test shows

September 22, 2021

22 September 2021
Firms and banks to be severely affected if climate change issues not addressed
Orderly and swift transition to minimise costs and maximise benefits outweighs short-term cost of transition to zero-carbon economy over medium to longer term
Investment in sectors and regions heavily exposed to climate risk set to suffer most
The European Central Bank (ECB) today published the results of its economy-wide climate stress test. The exercise tested the impact of climate change on more than four million firms worldwide and 1,600 euro area banks under three different climate policy scenarios.
The results show that firms and banks clearly benefit from adopting green policies early on to foster the transition to a zero-carbon economy. The exercise also reveals that the

Read More »

Isabel Schnabel: Asset purchases: from crisis to recovery

September 20, 2021

Speech by Isabel Schnabel, Member of the Executive Board of the ECB, at the Annual Conference of Latvijas Banka on "Sustainable Economy in Times of Change"
Frankfurt am Main, 20 September 2021
Asset purchases have become an important tool for central banks worldwide to secure price stability in the vicinity of the zero lower bound. The experience over the past decade has yielded many insights into how precisely asset purchases affect financial and economic conditions, the latest example being the response to the coronavirus (COVID-19) pandemic.
There is by now broad consensus that asset purchases can support economic growth and inflation in three main ways[1]: first, through the market stabilisation channel, by which asset purchases provide liquidity when there are deep dislocations

Read More »

Luis de Guindos: Interview with Het Financieele Dagblad

September 17, 2021

Interview with Luis de Guindos, Vice-President of the ECB, conducted by Joost van Kuppeveld and Daan Ballegeer
17 September 2021
[Introduction by the FD on inflation and its effect on savings]
“I fully understand that many people are complaining about the low interest rates, but you can’t look at purchasing power purely in terms of inflation,” De Guindos says. “You need to look at all of the effects of our policy. If negative rates are necessary for Europeans in order to boost the economy and retain their jobs, then that helps a significant share of society. With such a policy there are always trade-offs. As a Spanish minister of finance once said, what is good for your kidneys is bad for your liver, and what’s bad for your kidneys is good for your liver. You need to seek a balance.”

Read More »

Christine Lagarde: Interview with Bloomberg

September 16, 2021

Interview with Christine Lagarde, President of the ECB, conducted by David Rubenstein, Bloomberg, on 13 September
16 September 2021
Today we’re in conversation with Christine Lagarde, who is the President of the European Central Bank.
As we now look at the post-COVID environment, what would you say is the situation in Europe? Is Europe recovering more rapidly, or not quite as rapidly as you’d thought, from the COVID pandemic?
Actually, Europe is recovering more rapidly than we had anticipated. We have, as a result of that, significantly upgraded our projections. Our projection for this year is plus 5%, so it’s a significant upgrade, plus 4.6% next year and back to pre-COVID type of growth subsequently. But this year it’s certainly going faster than we had thought – to the point

Read More »

Isabel Schnabel: The monetary policy non-puzzle in bond markets

September 15, 2021

Speech by Isabel Schnabel, Member of the Executive Board of the ECB, at the Bond Market Contact Group meeting
Frankfurt am Main, 15 September 2021
Sovereign bond markets in the euro area and the United States have taken a remarkable turn over the summer.[1] Despite the ongoing strong recovery from the crisis, the revival of inflation and surveys signalling firming expectations among market participants that central bank asset purchases globally may gradually slow in the near future, sovereign bond yields have declined and partly reversed the upward trend observed in the beginning of the year.
In my remarks today I will discuss the drivers of recent bond market developments and zoom in on two factors that may currently pull yields lower: one relates to concerns regarding the spread of

Read More »

ECB appoints Isabel Vansteenkiste as Director General International and European Relations

September 13, 2021

13 September 2021
Isabel Vansteenkiste to take up new role on 1 November 2021
Ms Vansteenkiste succeeds Hans-Joachim Klöckers on his retirement from ECB on 31 October 2021
The Executive Board of the European Central Bank (ECB) has appointed Isabel Vansteenkiste as Director General International and European Relations. The Directorate General monitors and forecasts global economic trends and assists the Executive Board by preparing policy positions on international and EU/euro area matters and by making the arrangements for meetings of, for example, the International Monetary Fund (IMF), the G7 and G20 finance ministers and central bank governors, and EU and euro area finance ministers (ECOFIN and the Eurogroup).
Ms Vansteenkiste is currently Deputy Director General Monetary Policy

Read More »

Isabel Schnabel: New narratives on monetary policy – the spectre of inflation

September 13, 2021

Speech by Isabel Schnabel, Member of the Executive Board of the ECB, 148th Baden-Baden Entrepreneurs’ Talk
Frankfurt am Main, 13 September 2021
Sentiment in the euro area is brightening. Despite growing COVID-19 incidence numbers, consumers and firms are becoming more upbeat about the future. The European Commission’s economic sentiment indicator has improved markedly since the beginning of the year and was near record highs in August.
At the same time, consumer prices are increasing at a faster pace, following years of very low inflation. In August, inflation in the euro area stood at 3%, significantly exceeding the 2% mark that the Governing Council of the European Central Bank (ECB) has defined as its new medium-term inflation target (Slide 2). In Germany, the inflation rate, as

Read More »