ECB Weigh­ing Fed-Style Pol­icy Meet­ing Sched­ule

The Economic Times - - Money & Banking Bringing In A New Order -

The Euro­pean Cen­tral Bank is con­sid­er­ing hold­ing its meet­ings to set in­ter­est rates ev­ery six weeks in­stead of monthly, ac­cord­ing to three people fa­mil­iar with the dis­cus­sions. Ex­tend­ing the pe­riod be­tween mon­e­tary pol­icy de­ci­sions could help the ECB to agree on and pub­lish min­utes be­fore the next rate-set­ting ses­sion, the people said, ask­ing not to be iden­ti­fied be­cause the plans are still be­ing dis­cussed. The timetable echoes that of the US Federal Re­serve, which has eight sched­uled meet­ings a year and pub­lishes an ac­count three weeks later. ECB Pres­i­dent Mario Draghi sig­naled last month he wants to re­duce the fre­quency of rate de­ci­sions and in­crease the trans­parency of the process to curb spec­u­la­tion over pol­icy mak­ers’ plans. The Frankfurt-based in­sti­tu­tion is try­ing to hone its com­mu­ni­ca­tion strat­egy while guid­ing the 18-na­tion euro area through a grad­ual re­cov­ery against the back­drop of a pro­longed pe­riod of low in­fla­tion. —Bloomberg

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