ECB Meeting Accounts: Members agree ample monetary stimulus remains essential

The European Central Bank's (ECB) policymakers agreed that ample monetary stimulus remains essential, the ECB's January Monetary Policy Meeting Accounts showed on Thursday.

Market reaction

The shared currency showed no immediate reaction to this statement and the EUR/USD pair was last seen gaining 0.28% on a daily basis at 1.2070.

Key takeaways as summarized by Reuters

"In view of the sharp contraction of the euro area economy, it was deemed important for the governing council to emphasise the need for continued and ambitious fiscal policies to support the recovery."

"Governing council needed to state that it continued to stand ready to adjust all of its instruments, including the deposit facility rate, as appropriate, to ensure that inflation moved toward its aim in a sustained manner."

"Governing council should reiterate its vigilance with regard to developments in the exchange rate and their implications for the inflation outlook."

"Point was made that the governing council needed to stress that there was no room for complacency."

"The view was held that favourable financing conditions needed to prevail for some time."

"A balanced presentation of the outlook was called for, as some uncertainties regarding the international developments had been resolved in a more positive way than expected."

"Projected path of inflation continued to be distant from the governing council’s medium-term inflation aim."

"Not every increase in nominal yields should be interpreted as an unwarranted tightening."

"Nominal yields were not an appropriate benchmark for assessing whether financing conditions remained favourable."

"Members also widely agreed that there was no room for complacency."

"A more sustained rise in real rates could rapidly lower the relative attractiveness of equities and thereby pose the risk of a more broad-based repricing."

"To the extent that investors saw the risks surrounding us real rates as increasingly skewed to the upside, an important driver behind recent exchange rate developments could lose steam."

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD extends gains beyond 1.1820 after mixed US data

EUR/USD has extended its gains above 1.1820 after Durable Goods Orders missed expectations but the CB Consumer Confidence exceeded them. US yields are on the backfoot. Covid and infrastructure headlines are eyed.


GBP/USD soars toward 1.39 on UK covid optimism, dollar weakness

GBP/USD is trading close to 1.39, surging higher. The pound benefits from the drop in British covid cases while the dollar turned down after rising earlier. The US published mixed data.


Gold battles $1,800 as USD lingers near highs

Gold prices loiter near the $1,800 mark for the past five trading sessions. The US dollar remains steady near the four-month high ahead of the Fed’s interest rate decision. The prices moved cautiously despite the general negative sentiments surrounding the greenback.

Gold News

Crypto markets bleed after Amazon denies rumors; uptrend intact

Bitcoin price is experiencing a pullback after rallying 38% to tag $40,000. Ethereum price promptly follows BTC as it eyes a retracement to the $2,018 support level.

Read more

FX: 10 things to watch this week

Taking a look at the economic calendar, it is set to be a busy week for the forex market. There’s a central bank rate decision, GDP, inflation and employment reports scheduled for release. A number of big tech companies have ...

Read more