FRANKFURT, Jan 16 (Reuters) - The European Central Bank in its monthly bulletin on Thursday strongly emphasised its loose monetary policy stance.
As usual, the editorial of the bank’s bulletin was virtually identical to its main policy statement, read out by ECB President Mario Draghi last Wednesday, when the bank kept its main interest rate on hold at 0.25 percent.
“The Governing Council strongly emphasises that it will maintain an accommodative stance of monetary policy for as long as necessary,” the ECB said.
“Accordingly, the Governing Council firmly reiterates the forward guidance that it continues to expect the key ECB interest rates to remain at present or lower levels for an extended period of time.”
Below is a list of articles and special sections the bulletin contains. The articles can often shed light on the ECB’s thinking about key issues and give an insight into the type of analysis the bank uses to support its policy decisions.
* The external environment of the euro area
* Is weak credit holding back the economic recovery in the United States and the United Kingdom?
Business surveys have improved in Britain and the US. This, together with the comfortable cash balances held by US and UK companies, suggests that the preconditions for an investment recovery are in place.
* Latvia adopts the euro
* Monetary and financial developments
* Developments in the international investment position of the euro area since the outbreak of the financial crisis
* Prices and costs
* Output, demand and the labour market
* Business investment - signs of a modest recovery ahead
* To what extent has the current account adjustment in the stressed euro area countries been cyclical or structural?
* Fifteen years of the ECB Survey of Professional Forecasters
* Recent developments in excess liquidity and money market rates
“Should excess liquidity remain abundant, money market rates would continue to be anchored at levels close to the ECB deposit facility rates. If, however, excess liquidity were to decline towards more neutral conditions, money market rates would tend to be anchored to the MRO rate. Any transition period, as the liquidity provision normalises, would lead to greater volatility, which could imply that short-term rates could become less closely anchored to the ECB deposit facility rate. This would make expectations about future money market rates more complex to interpret, as several factors, such as future liquidity developments and uncertainty, would be priced in overnight index swaps, in addition to expectations about the future path of policy rates,” the article said.
* Medium-term prospects for China’s economy and the internationalisation of the renminbi
Reporting by Sakari Suoninen