Financial market sensitivity to announcements by the ECB (VoxEU, 2021)

Press/Media: Other

Description

VoxEU article

Period2 Jan 2021

Media contributions

1

Media contributions

  • TitleFinancial market sensitivity to announcements by the ECB
    Media name/outletVoxEU
    Country/TerritoryNetherlands
    Date2/01/21
    DescriptionPolicy announcements by a central bank policy can have a significant impact on financial markets. This column examines the sensitivity of various asset prices and other metrics to the ECB’s monetary policy announcements. Bond spreads, stock prices, and the euro-dollar exchange rate became more sensitive to policy announcements over time. But volatility of market ‘surprises’ was significantly higher after easing compared to after tightening decisions. This suggests that the ECB’s monetary policy communication has become an increasingly important market-moving event.
    URLhttps://cepr.org/voxeu/columns/financial-market-sensitivity-announcements-ecb
    PersonsJan Willem van den End, Anna Samarina