PEPP is the central pillar of ECB crisis response to the virus outbreak
OMT is part of our toolbox
Doesn't want to speculate about the use of OMT
Most urgent thing is coordinated fiscal policy response
Reuters reports that European Central Bank's vice-president Luis de Guindos said that so-called 'coronabonds', or common EU bonds, are not the only or the most effective instrument in the fight against the coronavirus..
"It is neither the only defensive tool nor certainly the most powerful," De Guindos told radio station Cadena Cope on Monday.
"The most powerful is undoubtedly the European Central Bank," he said.
Believes adopted measures are sufficient
We are ready to do more if necessary
ECB ready to increase size of bond purchase programme
Also ready to change its composition and duration, where necessary
Expansive monetary policies must be kept even when virus outbreak ends
The new package will be effective
There will be no liquidity problems
Fall in long-term rates will help governments fighting the virus
We have all the necessary flexibility
We are not a currency manipulator
We do not intervene to take advantage of other currencies
Central banks around the world are in close contact
But monetary policy alone cannot solve this crisis
Monetary policy is complementary and can support fiscal measures
Comments by RBA governor, Philip Lowe:
Expects cash rate to remain at current level for some years, but not forever
RBA doing all it can to lower funding costs, support supply of credit to businesses
RBA will not be buying bonds directly from the government
May take some time for yields to fall from current level to 25 bps
Expects yield target to be removed before raising the cash rate
Expects a recovery once the virus is contained
Also expecting significant job losses as the virus fallout hits
Will maintain current setting of rates until a strong recovery is in place
Nothing is off the table with policy
Expects bond yields across term structure to decline
Will do whatever is necessary to make sure credit is available
Says that we've done all we can do with the cash rate
The focus now is on taking other measures to support lending
It was impossible for ECB to meet market expectations
Crisis can have a cleansing effect for the economy
Sees ECB consensus that the crisis needs fiscal measures
Increases annual pace of ETF purchases to ¥12 trillion (previously ¥6 trillion)
10-year JGB yields target maintained at about 0%
Introduces new lending program to smooth funding for firms
Strengthens stance on asset purchases
To purchase more commercial paper, corporate bonds
BOJ says will take additional easing measures as needed
May increase or cut ETF goal depending on situation
Economic activity likely to remain weak for the time being
Somewhat weak indicators of inflation expectations have been seen recently
Need to watch for the impact of oil price drop
Watching the coronavirus impact very closely
We can front load bond purchases if needed
ECB will do more if needed
Widening of spreads makes transmission of policy more difficult
Board decided to lower the cash rate by 25 basis points to 0.50 per cent.
The Board took this decision to support the economy as it responds to the global coronavirus outbreak.
The coronavirus has clouded the near-term outlook for the global economy and means that global growth in the first half of 2020 will be lower than earlier expected.
Prior to the outbreak, there were signs that the slowdown in the global economy that started in 2018 was coming to an end.
It is too early to tell how persistent the effects of the coronavirus will be and at what point the global economy will return to an improving path.
Policy measures have been announced in several countries, including China, which will help support growth.
Inflation remains low almost everywhere and unemployment rates are at multi-decade lows in many countries.
Long-term government bond yields have fallen to record lows in many countries, including Australia.
The unemployment rate increased in January to 5.3 per cent and has been around 5¼ per cent since April last year.
Wages growth remains subdued and is not expected to pick up for some time.
A gradual lift in wages growth would be a welcome development and is needed for inflation to be sustainably within the 2-3 per cent target range.
RBNZ forecasts for the OCR show they do not expect to cut this year at all
Sees official cash rate at 1.01% in June 2020 (previous 0.9%)
Sees official cash rate at 1.03% in March 2021 (previous 0.9%)
Sees official cash rate at 1.1% in June 2021 (previous 0.94%)
Overall impact of coronavirus on New Zealand will be of a short duration
Risks that impact will be larger and more persistent
Low rates necessary to keep employment and inflation around target
economic growth expected to accelerate over second half of 2020
Employment is at or slightly above its max sustainable level
Inflation close to 2% mid point
Committee agreed low interest rates had helped to get employment and inflation to around their target levels
Committee discussed financial stability risks from ongoing low rates
Members noted the bank's assessment that marginal changes to the ocr would not materially affect these risks at this time
Members discussed the better mix of policy stimulus in the projections, given additional fiscal stimulus is reducing the burden on monetary policy
Committee discussed alternative cash rate settings and the various trade-offs involved
Incoming information since the last Governing Council meeting in early December is in line with the Governing Council's baseline scenario of ongoing, but moderate, growth of the euro area economy.
In particular, the weakness in the manufacturing sector remains a drag on euro area growth momentum.
At the same time, ongoing, albeit decelerating, employment growth and increasing wages continue to support the resilience of the euro area economy.
The risks surrounding the euro area growth outlook, related to geopolitical factors, rising protectionism and vulnerabilities in emerging markets, remain tilted to the downside, but have become less pronounced
While inflation developments remain subdued overall, there are some signs of a moderate increase in underlying inflation in line with expectations.
The unfolding monetary policy measures are underpinning favourable financing conditions for all sectors of the economy.
In particular, easier borrowing conditions for firms and households are supporting consumer spending and business investment.
This will sustain the euro area expansion, the build-up of domestic price pressures and, thus, the robust convergence of inflation to the Governing Council's medium-term aim.
Broadly in line with our expectations, the euro area economy continues to grow, though still with modest momentum.
The domestic economy remains relatively resilient.
Yet, global factors weigh on euro area growth.
To be sure, there are tentative signs of stabilisation, forward-looking indicators have become in slightly more optimistic
While uncertainties surrounding the global economic environment remain elevated, those related to trade tensions between the United States and China are receding
Other risks, however, are still lingering or - as for the uncertainty surrounding the impact of the coronavirus - are a renewed source of concern.
The overall moderate growth performance is delaying the pass-through from wage increases to prices and inflation developments remain subdued
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