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Resource Center » U.S. & International Recaps | Release Dates | Why Investors Care | Today's Calendar
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ECB Announcement
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Definition
The European Central Bank Governing Council consists of 18 members. The Committee meets twice a month. The first monthly meeting of the month is devoted to monetary policy. Changes in monetary policy if any are announced immediately after the meetings. A press conference is held about 45 minutes after the meeting ends. A statement is read concerning their action -- or lack of it -- followed by a question and answer period. The ECB does not publish any minutes for its meetings. Why Investors Care
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| Released on
2/7/08
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Highlights
As universally expected, the European Central Bank governing council left its key interest rate at 4 percent for the ninth month. ECB president Jean Claude Trichet remains unswervingly committed to fighting inflation, in spite of expectations that eurozone growth will slow in along with the rest of the global economy. This presents a dilemma for the bank. The flash estimate of the harmonized index of consumer prices showed that the annual rate of eurozone inflation climbed to 3.2 percent in January - the highest level since the data series started in 1997 and the fifth successive month that inflation has come in above the ECB's 2 percent price stability target. A major concern is the risk of second-round inflation effects - particularly given that the eurozone unemployment rate held at a record low of 7.2 percent in December. Overall economic sentiment has dipped to its lowest for two years, while consumer confidence - affected by the recent turbulence in financial markets - fell to its worst level since November 2005. Analysts will listen with interest to Mr Trichet's comments at his press conference later this morning.
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Trends
![[Chart]](chart.gif)
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The ECB monitors two "pillars" of monetary policy - the harmonized index of consumer prices (HICP) and M3 money supply - in its objective to control inflation. The ceiling for HICP growth is 2 percent. M3 growth is targeted at a 4.5 percent reference growth rate. In September, HICP eased to 3.6 percent from 3.8 percent in August. Money supply growth has eased from its peak of 12 percent in October and November of 2007 but still expanded at a rate of 8.9 percent for the three months ending in September when compared with the same three months a year earlier. |
Data Source: Haver Analytics | Consensus Data Source: Market News International and Thomson Financial
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