16 Feb 2015
ECB minutes this week, an important step in transparency – BBH
FXStreet (Barcelona) - The Brown Brothers Harriman Team comments that with a number of central banks scheduled to release its policy meeting minutes, the ECB minutes will likely be the most interesting and also an important step in the transparency, further adding that ECB’s review of ELA authorization to Greece this week will also remain in focus.
Key Quotes
“The most interesting central bank meeting report will come from the ECB. Until now the ECB has been reluctant to provide some record of its policy making discussions. This is expected to change this week. Neither the content nor format is understood yet, except that individual names will not be cited.”
“It was at the January meeting that the ECB decided to expand its asset purchase program from about 10 bln euros a month to 60 bln, which will include sovereign bonds.”
“While recognizing this is an important step in the transparency of the ECB, it is also a new channel of communication. Since the record can only be a partial summary of what happened, the ECB, like other central banks, will reveal what it wants.”
“The ECB is also expected to review its ELA authorization to Greece. Some claim the ECB's decision to no longer accept Greek government bonds as collateral was aimed not so much at Greece as to force both sides together. However, it took place immediately following Draghi's meeting with Greece's new finance minister and not after Draghi's discussions with Berlin."
“Surely the two sides would have been engaged in tough negotiations even if the ECB continued to accept Greek bonds.”
Key Quotes
“The most interesting central bank meeting report will come from the ECB. Until now the ECB has been reluctant to provide some record of its policy making discussions. This is expected to change this week. Neither the content nor format is understood yet, except that individual names will not be cited.”
“It was at the January meeting that the ECB decided to expand its asset purchase program from about 10 bln euros a month to 60 bln, which will include sovereign bonds.”
“While recognizing this is an important step in the transparency of the ECB, it is also a new channel of communication. Since the record can only be a partial summary of what happened, the ECB, like other central banks, will reveal what it wants.”
“The ECB is also expected to review its ELA authorization to Greece. Some claim the ECB's decision to no longer accept Greek government bonds as collateral was aimed not so much at Greece as to force both sides together. However, it took place immediately following Draghi's meeting with Greece's new finance minister and not after Draghi's discussions with Berlin."
“Surely the two sides would have been engaged in tough negotiations even if the ECB continued to accept Greek bonds.”