Ms Schnabel reviewed the financial market developments since the Governing Council’s previous monetary policy meeting on 8-9 September 2021. Market-based measures of inflation compensation in the euro area had surged to their highest levels in over seven years, pushing long-term nominal sovereign bond yields back to levels seen earlier in the year. In the euro area, ten-year inflation swap rates were more than 30 basis points higher than in September 2021 and a full percentage point higher than in December 2020, when the Governing Council had pledged to preserve favourable financing conditions. The five-year forward ... (full story)

According to the accounts of the October European Central Bank monetary policy meeting, the view was held that, judging on the basis of the current developments, net purchases under the Pandemic Emergency Purchase Programme could be expected to come to an end by March 2022. (full story)