At its policy meeting on 4 October, the European Central Bank (ECB) kept the refinancing rate unchanged at a record low of 0.75%. The decision, which matched market expectations, represents the third consecutive month in which the ECB leaves the refinancing rate unchanged. In the accompanying statement, monetary authorities noted that "economic indicators, in particular survey results, confirm the continuation of weak economic activity in the third quarter of 2012, in an environment characterised by high uncertainty". The ECB believes that the Euro area economy will remain weak in the near term and recover "only very gradually" in the longer run. Risks to the growth outlook remain on the downside, amid "ongoing tensions in several euro area financial markets and the potential spillover to the Euro area real economy." Regarding price developments, the ECB maintained its view that inflation will stay above 2% in 2012 on the back of higher energy prices and recent increases in indirect taxes by national governments, before falling below 2% over the course of next year. Monetary authorities believe that in the current environment of modest economic growth, price pressures should remain subdued and that current levels of inflation "should [...] remain transitory and not give rise to second-round effects". According to the ECB, the announcement of the Outright Monetary Transactions (OMT) programme has already contributed to alleviate "ongoing tensions in some Euro area financial markets". Monetary authorities reaffirmed their intention to act and undertake bond purchases once a country in need of external aid fulfils the requirements established by the bond-buying scheme.
Eurozone Monetary Policy
ECB ready to activate OMTs
October 4, 2012
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Eurozone Economic News
October 20, 2016
The European Central Bank (ECB) decided to stay the course and made no changes to its monetary policy at its 20 October meeting, matching market expectations.
October 17, 2016
Complete data released by Eurostat on 17 October confirmed that harmonized inflation was 0.4% in September, above August’s 0.2% and the highest reading seen since June 2014.
October 12, 2016
The industrial sector in the common-currency bloc grew in August after contracting in July.
September 30, 2016
Inflation rose to an almost two-year high in September, providing some evidence that the European Central Bank’s monetary stimulus is bearing fruit.
September 30, 2016
Conditions in the labor market in the common-currency bloc remained broadly unchanged in August, according to recently released data by Eurostat.