FRANKFURT (Reuters) - The ECB will take into account the way monetary policy is being transmitted as well as economic prospects in setting the terms of its new series of cheap two-year loans to banks, ECB President Mario Draghi said on Wednesday.
The European Central Bank will announce the precise terms of the Targeted Long-Term Refinancing Operation (TLTRO) at a future policy meeting, Draghi told a news conference after the bank left monetary policy unchanged as expected.
The bank unveiled the new TLTRO last month. It will start in September and is aimed at helping banks meet their funding needs and ensuring credit keeps flowing to the economy.
The loans’ pricing “will take into account a thorough assessment of the bank-based transmission channel of monetary policy as well as further developments in the economic outlook,” Draghi said.
He said the ECB’s Governing Council did not discuss the terms of the TLTRO at Wednesday’s meeting, nor the pros and cons of mitigating measures.
Reporting By Francesco Canepa; writing by John Stonestreet; Editing by Catherine Evans