FOREX TradingCharts.com

Financial News: Policymakers Saw Recent Bond Yield Rise Premature, ECB

Policymakers Saw Recent Bond Yield Rise Premature, ECB Mintues Show

04/08/2021 - 08:11:00 (RTTNews)

(RTTNews) - Policymakers saw the recent rise in bond yields was largely premature for the euro area and that warranted the maintenance of an ample degree of stimulus, the minutes of the European Central Bank's March 10-11 meeting showed Thursday.

"The recent tightening of financing conditions was generally seen as premature for the euro area, which was still in a weaker cyclical position than the United States," the minutes, which the ECB calls the "account" said.

The ECB staff projections in March were largely unchanged from December.

"This was widely seen to call for a continuing high degree of accommodation," the minutes said.

In the March policy session, the ECB decided to leave interest rates unchanged and to conduct asset purchases under the EUR 1,850 billion pandemic emergency purchase program, or PEPP, at a significantly higher pace over the next quarter.

An argument was also put forward that higher real rates were not necessarily a cause for concern and should not trigger a policy intervention if they reflected higher growth prospects rather than higher real term premia, the minutes said.

Members agreed that the PEPP purchase volume needed to be increased significantly to give a clear message to markets on the Governing Council's "reaction function".

Policymakers also stressed the need to avoid giving the impression of being overly focused on sovereign yields or reacting mechanically to a set of indicators of financing conditions. "Moreover, the view was put forward that the tightening might not be sizeable and persistent enough to affect broader financing conditions materially," the minutes said.

Rate-setters also highlighted that the flexibility embodied in the PEPP was symmetric, implying that the purchase pace could be increased and decreased according to market conditions.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2021 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


Dutch Exports Rises In February (13 min(s), 06 sec(s) ago)
(RTTNews) - Dutch exports and imports increased in February, figures from the statistical office C ...Full Story»

New Zealand Central Bank Keeps Policy Unchanged (27 min(s), 06 sec(s) ago)
(RTTNews) - New Zealand's central bank left its monetary policy unchanged on Wednesday, as wid ...Full Story»

South Korea Jobless Rate Falls In March (25 min(s), 06 sec(s) ago)
(RTTNews) - South Korea's unemployment rate declined in March, data from Statistics Korea show ...Full Story»

European Economics Preview: Eurozone Industrial Output Data Due (01 hr(s), 16 min(s), 06 sec(s) ago)
(RTTNews) - Industrial production from euro area is due on Wednesday, headlining a light day for t ...Full Story»

Australia Consumer Confidence Index Jumps 6.2% In April - Westpac (16 min(s), 54 sec(s) ago)
(RTTNews) - Consumer confidence in Australia spiked in April, the latest survey from Wetspac Bank ...Full Story»

Singapore GDP Climbs 2.0% In Q1 - Advance Estimate (01 min(s), 54 sec(s) ago)
(RTTNews) - Singapore's gross domestic product expanded a seasonally adjusted 2.0 percent on q ...Full Story»

Japan Core Machine Orders Plummet 8.5% On Month In February (46 min(s), 54 sec(s) ago)
(RTTNews) - The value of core machine orders in Japan tumbled a seasonally adjusted 8.5 percent on ...Full Story»

Singapore GDP Jumps 2.0% In Q1 - Advance Estimate (30 min(s), 54 sec(s) ago)
(RTTNews) - Singapore's gross domestic product gained a seasonally adjusted 2.0 percent on qua ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

Dutch Exports Rises In February

04/14/2021 - 01:35 AM (RTTNews)
(RTTNews) - Dutch exports and imports increased in February, figures from the statistical office C ...Full Story>>

South Korea Jobless Rate Falls In March

04/14/2021 - 01:23 AM (RTTNews)
(RTTNews) - South Korea's unemployment rate declined in March, data from Statistics Korea show ...Full Story>>

New Zealand Central Bank Keeps Policy Unchanged

04/14/2021 - 01:21 AM (RTTNews)
(RTTNews) - New Zealand's central bank left its monetary policy unchanged on Wednesday, as wid ...Full Story>>

European Economics Preview: Eurozone Industrial Output Data Due

04/14/2021 - 00:32 AM (RTTNews)
(RTTNews) - Industrial production from euro area is due on Wednesday, headlining a light day for t ...Full Story>>

Australia Consumer Confidence Index Jumps 6.2% In April - Westpac

04/13/2021 - 21:05 PM (RTTNews)
(RTTNews) - Consumer confidence in Australia spiked in April, the latest survey from Wetspac Bank ...Full Story>>

Do not sell my personal information

Copyright © 2021. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.