ecb meeting september 2020

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However, the recovery was asymmetric, being further advanced in the manufacturing sector than in the services sector. Inflation had been persistently below levels consistent with the Governing Council’s inflation aim and inflation expectations remained close to their historical lows, amplifying risks to the anchoring of medium-term inflation expectations. Moreover, in the near term price pressures were expected to remain subdued owing to weak demand, lower wage pressures and the appreciation of the euro exchange rate, despite some upward price pressures related to supply constraints. In this context, NGEU funds were seen as important in helping to create a more level playing field, as the scope for national fiscal measures differed across countries. Turning to fiscal policies, the euro area fiscal stance was expected to be strongly expansionary in 2020, with most of the additional spending comprising transfers to firms and households. Consumer spending had increased, but accumulated savings remained high and households were likely to remain cautious, especially in the context of the expected deterioration in labour market conditions. In this environment, it was important for the Governing Council to underline its readiness to adjust all of its instruments, as appropriate, to ensure that inflation moved towards its aim in a sustained manner. Compared with the September 2020 ECB staff macroeconomic projections, the outlook for inflation has been revised down for 2020 … Following strong increases during the early months of the pandemic, the annual growth rate of loans to non-financial corporations had remained broadly stable in July, standing at 7.0%. The comment was made that inflation expectations appeared to have stabilised overall and, although uncertainty about the inflation outlook remained high, markets were beginning to price out the risk of deflation. The members of the Governing Council also strongly welcomed the NGEU package of €750 billion, which had the potential to significantly support the regions and sectors hardest hit by the pandemic, strengthen the Single Market and build a lasting and prosperous recovery. Find out how the ECB promotes safe and efficient payment and settlement systems, and helps to integrate the infrastructure for European markets. The … While the incoming data since the last Governing Council meeting had been positive overall, suggesting a strong resumption of euro area activity broadly in line with previous expectations, risks continued to be tilted to the downside and the strength of the recovery remained surrounded by significant uncertainty. * Members not holding a voting right in September 2020 under Article 10.2 of the ESCB Statute. Since the July monetary policy meeting, market-based measures of longer-term inflation expectations had continued to recover from the historical lows reached in mid-March, but remained at very depressed levels. Market-based indicators of longer-term inflation expectations had returned to their pre-pandemic levels, but the increase had been much smaller than in the United States and they still remained at very subdued levels. Many countries were now experiencing new outbreaks of the virus. Euro area sovereign and corporate bond yield spreads had narrowed further, while equity prices, notwithstanding some weakening in bank stocks, had remained resilient overall on the back of favourable global risk sentiment and supportive monetary and fiscal policies. * Members not holding a voting right in September 2020 under Article 10.2 of the ESCB Statute. Even after the developments of the past few days, the Standard & Poor’s 500 stock market index was still up by around 50% from its mid-March 2020 trough and remained above pre-crisis levels. In the context of the announcement by the US Federal Reserve System of a revised Statement on Longer-Run Goals and Monetary Policy Strategy, it was important to highlight that the ECB’s strategy review had been delayed because of the COVID-19 pandemic and that it would resume shortly and would be an important focus of the Governing Council’s work over the next year. Loan Disbursement under the Fund-Provisioning Measure to Stimulate Bank Lending (December 2020), Semiannual Report on Currency and Monetary Control (Summary), (Research Paper) Prospects of Private Equity Funds in Japan — Expectations toward Finance with Ideas and Commitment —, Review of the Benchmark Ratio Used to Calculate the Macro Add-on Balance in Current Account Balances at the Bank of Japan, Average Interest Rates by Type of Deposit, Decisions taken by the Governing Council of the ECB (in addition to decisions setting interest rates), Christine Lagarde, Luis de Guindos: Introductory statement to the press conference (with Q&A), ECB extends pandemic emergency longer-term refinancing operations, ECB prolongs support via targeted lending operations for banks that lend to the real economy, Denmark to join Eurosystem’s TARGET services, Philip R. 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