From press conferences to speeches: the impact of the ECB’s monetary policy communication

Yıldız Akkaya, Lea Bitter, Adriana Grasso and Brian Amorim Cabaco

Economic Bulletin Boxes, 2025, vol. 1

Abstract: Monetary policy communication is important for managing policy expectations and enhancing the effectiveness of central bank policy decisions. The prevalence of topics in the ECB’s communication has shifted over time with the focus of its work: from the creation and introduction of the euro to addressing financial crises with new policy instruments, and more recently, to tackling the effects of the 2021-22 inflation surges. The analysis shows that, while press releases and monetary policy statements following Governing Council meetings lead to significant immediate changes in asset prices, communication taking place between these meetings also has a meaningful impact, with a substantial cumulative effect over time. A holistic understanding of the impact of Governing Council communication – both immediately after its meetings and between one meeting and the next – is central for managing expectations and shaping monetary policy outcomes. JEL Classification: E52, E58, E61

Keywords: Communication; Financial Markets; Monetary Policy (search for similar items in EconPapers)
Date: 2025-02
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