European Central Bank Statement comparison — 11 March 2021 vs 10 June 2021
This European Central Bank statement comparison covers 11 March 2021 and 10 June 2021. Overall, the newer document was broadly unchanged. The June 2021 statement reaffirms the March stance with no material changes: PEPP continues at a significantly higher pace, rates on hold, and forward guidance unchanged. The ECB is in a wait-and-see mode, maintaining accommodative policy while monitoring inflation and financing conditions.
What changed
Broadly unchanged. The June 2021 statement reaffirms the March stance with no material changes: PEPP continues at a significantly higher pace, rates on hold, and forward guidance unchanged. The ECB is in a wait-and-see mode, maintaining accommodative policy while monitoring inflation and financing conditions.
- Inflation — Little changed. No direct mention of inflation; indirectly referenced in rate guidance and risk balance but no change in characterisation.
- Labour Market — Little changed. No mention of labour market in either document; no shift.
- Rate Path — Little changed. Forward guidance on rates unchanged; PEPP pace maintained at elevated level, but no new easing or tightening signal.
- Balance Sheet — Little changed. PEPP envelope flexibility and APP unchanged; risk balance language identical.
Key wording
The Governing Council expects purchases under the PEPP over the next quarter to be conducted at a significantly higher pace than during the first months of this year.
If favourable financing conditions can be maintained with asset purchase flows that do not exhaust the envelope over the net purchase horizon of the PEPP, the envelope need not be used in full. Equally, the envelope can be recalibrated if required to maintain favourable financing conditions to help counter the negative pandemic shock to the path of inflation.
The interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.00%, 0.25% and -0.50% respectively.
The Governing Council expects the key ECB interest rates to remain at their present or lower levels until it has seen the inflation outlook robustly converge to a level sufficiently close to, but below, 2% within its projection horizon, and such convergence has been consistently reflected in underlying inflation dynamics.
The interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.00%, 0.25% and -0.50% respectively.
The Governing Council expects the key ECB interest rates to remain at their present or lower levels until it has seen the inflation outlook robustly converge to a level sufficiently close to, but below, 2% within its projection horizon, and such convergence has been consistently reflected in underlying inflation dynamics.
Based on a joint assessment of financing conditions and the inflation outlook, the Governing Council expects net purchases under the PEPP over the coming quarter to continue to be conducted at a significantly higher pace than during the first months of the year.
If favourable financing conditions can be maintained with asset purchase flows that do not exhaust the envelope over the net purchase horizon of the PEPP, the envelope need not be used in full. Equally, the envelope can be recalibrated if required to maintain favourable financing conditions to help counter the negative pandemic shock to the path of inflation.
Official documents
Background reading
Related
11 March 2021 statement · 10 June 2021 statement · Earlier meeting · Later meeting · Previous comparison · Next comparison · Methodology
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