ECB releases the accounts of its January policy meeting - 18 February 2021

  • It was deemed important to emphasise the need for continued fiscal policy to support the economic recovery
  • Governing council stands ready to adjust all instruments, including deposit facility rate, to ensure inflation moves towards target
  • Point was made to stress that there was no room for complacency
  • Not every increase in nominal yields should be interpreted as unwarranted tightening
  • Projected path of inflation continues to be distant from inflation target
  • Full account
  • January statement

There isn't anything that really stands out but there was a mention that policymakers had acknowledged that the euro currency had fallen against the dollar, suggesting that their recent policy stance remains fit i.e. jawboning if and when necessary.

Other than that, they highlight a key risk to the equities rally being a higher and more sustained rise in real rates - which is not really taking place for now despite the jump in breakevens and higher yields for the most part.