ECB Announcement

DEFINITION of 'ECB Announcement '

An announcement by the European Central Bank (ECB) Governing Council after their first meeting of the month which is devoted to monetary policy. The ECB Announcement comes about 45 minutes after the meeting in a press conference, and details their actions or lack of actions decided in the meeting.

Because the ECB does not publish the minutes of its meetings, the ECB Announcement is important to gather information regarding upcoming interest rate policy.

BREAKING DOWN 'ECB Announcement '

European market participants speculate on the possibilities of an interest rate change at these meetings. The ECB has a target rate for inflation, measured by the Harmonized Index of Consumer Prices (HICP), of 2%. Interest rates are changed to help maintain an inflation rate close to their target. As with interest rate speculation in other markets, if the ECB Announcement provides information different from the speculation, severe market impact is usually seen.

A general rule to keep in mind when interpreting central bank data such as that released in this announcement, is that higher interest rates are bearish for equity markets, while lower rates are bullish.

RELATED TERMS
  1. Federal Open Market Committee Meeting ...

    The meeting of the Federal Open Market Committee (FOMC) that ...
  2. Announcement Date

    1. The date at which a company will announce the details regarding ...
  3. Earnings Announcement

    An official public statement of a company's profitability for ...
  4. Harmonized Index Of Consumer Prices ...

    A list of the final costs paid by European consumers for the ...
  5. Monetary Policy

    Monetary policy is the actions of a central bank, currency board ...
  6. European Central Bank - ECB

    The central bank responsible for the monetary system of the European ...
Related Articles
  1. Markets

    4 Consequences of Draghi's Negative Rate Policy

    What has been the effect of negative interest rates on Europe's economy so far? Here are a few pros and cons.
  2. Forex

    European Euro

    A closer look at the European euro
  3. Economics

    8 Harmful Side Effects of Continued European Quantitative Easing (Q.E.)

    Read about eight harmful side effects of European Central Bank's decision to boost its quantitative easing (QE) program and push interest rates even lower.
  4. Investing News

    5 Times the European Central Bank Got It Right This Century

    Find out how the ECB made the right moves in pulling the eurozone through many difficult periods despite skepticism the euro would stand the test of time.
  5. Economics

    Top 4 Central Banks Dominating the World Economy

    Central banks play an integral role in market economies by maintaining the stability and credibility of national currencies used in those economies.
  6. Fundamental Analysis

    European Banks: Growth in 2016?

    Understand the potential growth drivers of the European banking sector and whether 2016 will be a year of growth or continued stagnation.
  7. Investing News

    Will European Deflation Lead to More Stimulus?

    Discover why the European Central Bank is likely to announce a bolder stimulus package after consumer prices declined 0.2% in February 2016.
  8. Economics

    How Negative Interest Rates Work

    Policymakers in Europe go for the unconventional: negative interest. What could happen?
  9. Forex Strategies

    Will the Euro Continue to Rally? (EUO)

    The euro is rallying. Should investors chase this performance or is the real opportunity on the other side of the trade?
  10. Economics

    Will The ECB's Quantitative Easing Sink The Euro?

    The European Central Bank is embarking on a trillion-euro QE program to revive the eurozone economy, and the euro currency is in free fall.
RELATED FAQS
  1. What is the relationship between inflation and interest rates?

    Inflation and interest rates are linked, and frequently referenced in macroeconomics. Inflation refers to the rate at which ... Read Answer >>
  2. Who determines interest rates?

    In countries using a centralized banking model, interest rates are determined by the central bank. In the first step of interest ... Read Answer >>
  3. What precise measures are implemented in most monetary policies?

    Read about some of the precise measures implemented in most monetary policies, and learn why monetary policy is considered ... Read Answer >>
  4. What are the implications of a low Federal Funds Rate?

    Find out what a low federal funds rate means for the economy. Discover the effects of monetary policy and how it can impact ... Read Answer >>
  5. How does monetary policy impact the cost of debt?

    Learn how monetary policy impacts the cost of debt. This economics lesson explains how the Federal Reserve influences interest ... Read Answer >>
  6. Under what circumstances will a government change its monetary policy?

    Learn about the kind of variables, including political and theoretical factors, that can bring about change in a government's ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center