29 Jul 2013
ECB to soon publish minutes of its meetings?
FXstreet.com (Barcelona) - The ECB may start publishing the minutes of its Governing Council meetings soon, according to two executive board members, who positioned themselves in favor of releasing the minutes of Governing Council meetings.
The move, if confirmed, would be a major change in the way the ECB communicates with the market. While the ECB President Mario Draghi is available for a press conference following rate calls, accompanied by Vice President Vitor Constancio, many other relevant details such as the split in votes, and reasons behind each of the votes, are kept in secret. If implemented, the ECB would follow other major central banks such as the Fed, the BoE or the BoJ in publishing minutes from the meetings.
Benoit Coeure, a French executive board member, said: "Transparency is important for the effectiveness of monetary policy and for trust in the central bank" he told in an interview to Germany's Sueddeutsche Zeitung and France's Le Figaro.
"There was a time in which the ECB was ahead in communication and transparency. In the meantime the ECB is the only large central bank that does not publish meeting minutes. Society, however, demands transparency and accountability. Therefore, I think personally that the ECB should soon begin to publish minutes of its meetings."
Meanwhile, Joerg Asmussen, also member of the board, said that the minutes should include "who voted for what and for what reason." Mr. Asmussen also supported the idea of more transparency on details of emergency liquidity assistance programs by national central banks, although admitted this information is up to each national central bank to be made available.
Asmussen added: "When supervision shifts to the EU-level, it's in the ECB's interest to have the greatest degree of accountability and democratic control via the European Parliament."
As Todd Buell from Dow Jones explains, in the past, "the ECB has refrained from publishing minutes because it would open up members to pressure to vote in national interests rather than European interests."
The move, if confirmed, would be a major change in the way the ECB communicates with the market. While the ECB President Mario Draghi is available for a press conference following rate calls, accompanied by Vice President Vitor Constancio, many other relevant details such as the split in votes, and reasons behind each of the votes, are kept in secret. If implemented, the ECB would follow other major central banks such as the Fed, the BoE or the BoJ in publishing minutes from the meetings.
Benoit Coeure, a French executive board member, said: "Transparency is important for the effectiveness of monetary policy and for trust in the central bank" he told in an interview to Germany's Sueddeutsche Zeitung and France's Le Figaro.
"There was a time in which the ECB was ahead in communication and transparency. In the meantime the ECB is the only large central bank that does not publish meeting minutes. Society, however, demands transparency and accountability. Therefore, I think personally that the ECB should soon begin to publish minutes of its meetings."
Meanwhile, Joerg Asmussen, also member of the board, said that the minutes should include "who voted for what and for what reason." Mr. Asmussen also supported the idea of more transparency on details of emergency liquidity assistance programs by national central banks, although admitted this information is up to each national central bank to be made available.
Asmussen added: "When supervision shifts to the EU-level, it's in the ECB's interest to have the greatest degree of accountability and democratic control via the European Parliament."
As Todd Buell from Dow Jones explains, in the past, "the ECB has refrained from publishing minutes because it would open up members to pressure to vote in national interests rather than European interests."