Disputed
How much of the June BTP move was caused by the President’s wording, as opposed to the end of net asset purchases, is a market-commentary claim. The 15 June ad-hoc meeting is the documented institutional response.
A hike the room already signalled
Stakes · Whether the first rate increase in eleven years is announced with a new bond-purchase instrument, or split across meetings.
It is 21 July 2022. You chair the . Inflation is far above 2 percent. The Council has not raised key rates since 2011.
In June you told the press the European Central Bank (ECB) would not tolerate that impairs transmission — without unveiling a new instrument. Italian spreads over Bunds jumped.
On 15 June the Council met ad hoc. It announced flexible Pandemic Emergency Purchase Programme () reinvestment and faster work on an anti-fragmentation tool.
Staff have a draft Transmission Protection Instrument (). Some governors want TPI in the same communiqué as the hike. Others want 25 basis points, as signalled. A third group would announce TPI and wait on the hike.
Your job today is the sequence: hike, tool, explanation.
Constraints of the office here
- — The Governing Council had indicated a 25 basis-point lift at the previous meeting. Inflation data have come in hotter.
- — Italian spreads widened after the 9 June press conference. The 15 June ad-hoc meeting promised a new tool.
Options · keys 1–3