- ECB Monetary Policy Meeting Accounts: Members agreed that ample monetary stimulus remained essential to preserve favourable financing conditions over the pandemic period
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18 February 2021
ECB Monetary Policy Meeting Accounts: Members agreed that ample monetary stimulus remained essential to preserve favourable financing conditions over the pandemic period
- The ECB released account of its January 20-21 monetary policy meeting. It noted that:
- Risks surrounding Eurozone’s growth outlook remained tilted to downside but had become less pronounced;
- Ongoing pandemic and its implications for economic and financial conditions continued to be sources of downside risk;
- Members highlighted the dichotomy between risks to short-term outlook and more positive developments in medium term;
- An ambitious and coordinated fiscal stance was seen as remaining critical, in view of sharp contraction in the euro area economy;
- Members agreed that ample monetary stimulus remained essential to preserve favourable financing conditions over the pandemic period;
- It was deemed important for Governing Council to emphasize need for continued and ambitious fiscal policies to support recovery;
- Governing Council continued to stand ready to adjust all of its instruments, as appropriate, to ensure that inflation moved towards its aim in sustained manner, in line with its commitment to symmetry;
- Members also widely agreed that there was no room for complacency and that Governing Council had to continue to stand ready and use all of its instruments, as appropriate, to ensure a robust convergence of inflation towards its aim
- It was maintained that not every increase in nominal yields should be interpreted as unwarranted tightening of financing conditions and trigger corresponding policy response
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