European Central Bank (ECB) Monetary Policy Meeting Accounts

The European Central Bank's (ECB) Monetary Policy Meeting Accounts are published four weeks after the ECB's interest rate and monetary policy meeting. The Accounts contain the details of the meeting held. The publication of the Accounts provides analysts and market participants with information on reasons for these decisions.

The first part of the Accounts contains a description of the financial, economic and monetary state in the eurozone, as well as the analysis of the effectiveness of the monetary policy measures adopted at the previous meeting. Also the first part includes ideas on the general business climate in the eurozone and of the political environment. These are information statements made by the Board members, which do not involve discussion.

Discussions are included in the second part of the Accounts. The economic and monetary analysis provides a discussion of risks for the economic activity (both in the eurozone and globally), as well as measures to reduce these risks. It also provides brief characteristics of eurozone's main economic health indicators and inflation (such as demand, consumption, labor market state, etc.). Measures to achieve or maintain the target inflation level (2%) are discussed. After that the Board members proceed to discussion of monetary policy measures and short-term interest rates.

Generally, to increase inflation to the target level, the ECB may weaken euro quotes by cutting the interest rate and pursuing monetary easing. Conversely, in order to slow down inflation, the regulator may raise interest rates and tighten monetary policy.

The publication of the Meeting Accounts provides economists the underlying rationale of decisions adopted by the ECB. Depending on opinions expressed by Council members and general rhetoric, analysts can make assumptions on when the interest rate will change next time and what short-term monetary policy measures can be expected. The ECB's Monetary Policy Meeting Accounts are expected by analysts, but they only affect euro quotes if contain clear hints on near-term changes in the monetary policy.