What it measures
The ECB has three key interest rates: the deposit facility rate, the rate on main refinancing operations and the rate on the marginal lending facility. The Governing Council has said it steers its policy stance through the deposit facility rate, the rate banks earn on money they leave with the central bank overnight, so that is the rate the calendar shows.
Who publishes it and when
The Governing Council holds its monetary policy meetings about every six weeks. The decision is published at 14:15 Frankfurt time, and the President's press conference starts at 14:45. An account of the meeting follows about four weeks later.
How it is put together
The Governing Council is made up of the six members of the ECB's Executive Board and the governors of the national central banks of the euro area countries. Its goal is price stability, defined as 2% inflation over the medium term.
What traders watch
Traders watch whether the decision matches expectations, the wording about future steps, the staff economic projections published at every other meeting, and how the President answers questions about the outlook.
How markets have usually reacted
A rise or a firmer tone has often lifted the euro and European bond yields; a cut or a softer tone has often weighed on them. European stock indices have often reacted in the opposite direction to yields. Because the press conference follows half an hour later, the market can move twice.
Common mistakes
- Reacting to the rate alone. When the decision itself is expected, the statement, the vote and the press conference usually decide the move.
- Trading the first seconds: spreads widen and prices can jump in both directions before settling.
- Forgetting the press conference: it starts after the statement and can move the market a second time.
How a higher or lower figure is usually read
A rate rise is usually read as supportive for the euro and a cut as negative. When no change is expected, the statement and press conference matter most. Not a signal.
Release history
| Date | Period | Actual | Previous |
|---|---|---|---|
| — | 2.50% | 2.50% |
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- How to use an economic calendar: what happens around a release, and how to plan for it
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Official source
Calendar data: www.ecb.europa.eu
Published by European Central Bank (ECB), Governing Council: www.ecb.europa.eu