ECB (European central bank) was inaugurated in the late 1990s (1999) and it has a substantial impact on Forex currency trading. The ECB’s governing council makes decisions about modifications in monetary policy. This council is assembled from the governers of every national central bank of 19 eurozone countries and six ECB’s executive boards members.
ECB is a central bank, so it doesn’t appreciate surprises. Whenever it intends to modify its interest rates, it usually gives the press an extended notice by alerting the market of the action to come.
It’s the bank rule to maintain price stability and keep sustainable growth. Contrary to Fed, the ECB seeks to keep the annual growth rate within sales price less than 2%. Also, ECB is an export-dependent economy, so it is interested in curbing excess power in its currency because this threatens its export market.
The council of ECB conducts meetings after every two weeks, but the decisions regarding policy changes are usually made in meeting sessions where there is a press conference. These meetings take place 11 times in one year.
BOE (Bank of England) is public property; it implies that it keeps the British people up to date through parliament. BOE was established in 1694 and is often regarded as one of the most effective central banks worldwide. The main aim of BOE is to sustain its financial and monetary system. To meet this, the inflation target of this central bank is 2%. If prices exceed this level, BOE will try to prevent inflation. At the same time, a level below 2% will persuade the central bank to take steps to increase inflation.
The BOE also guareeentees:
There are nine members in the bank’s monetary policy committee; the nine members include a governor, four external experts, one chief economist, and three deputy governors. Eight monetary policy committee meetings are held per year; the members declare the bank’s policy in these meetings.
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