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European Central Bank: Updated capital key “forces“ the ECB to reduce holdings of Italian, Spanish and French bonds

April 3, 2019
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At the recent meeting of the Governing Council on 7 March 2019, the ECB decided to maintain an extremely expansionary degree of monetary accommodation in future. It now announced to keep target rates at their present extraordinarily low levels at least through year-end 2019 – instead of just "through the summer", as previously pledged. Furthermore, it reiterated that it intends to maintain the huge size of EMU sovereign bond holdings purchased between March 2015 and the end of December 2018 for an incalculable period of time. As a consequence, principal payments from maturing securities bought under the APP (asset purchase programme), including sovereign bonds from the PSPP portfolio (public sector purchase programme) have to be reinvested in full. This ought to support demand for EMU bonds for some time to come, putting downward pressure on yields. [more]

More documents contained in "Chart in Focus"

44 (25-36)
February 23, 2016
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Analyst:
26
Despite a small dip in Q3 2015, the assets of financial institutions in the euro area are still broadly at a record level of about EUR 66 trillion. The financial sector – composed of banks, insurance companies & pension funds, and “shadow banks” – more than doubled its size over the past 15 years. Shadow banks have grown the most and now represent 40% of the financial sector with assets estimated at EUR 26 trillion. [more]
January 28, 2016
Analyst:
27
The share of light trucks (such as pickups and heavy sport utility vehicles) in total vehicle sales has increased noticeably in the US of late, reaching a new high of over 60% at the end of 2015. This came at the expense of conventional passenger car sales. The huge slide in oil prices, and thus petrol prices, quite obviously encourages this shift in preferences, as fuel costs become less of an issue for drivers. This is not a favourable development for the German automakers. After all, they command just 4.7% of the light truck market in the US. By contrast, they boast a 12.3% share of the passenger car segment. [more]
December 22, 2015
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Analyst:
28
The manufacturing sector's stock of foreign direct investment (FDI) added up to some EUR 251.1 bn in Germany in 2013. This is equivalent to more than 27% of total German FDI. The data is collated on the basis of the specific business sector to which a German investor belongs. The statistics incorporate the following direct investments of domestic companies and private individuals: firstly, direct cross-border share capital or company voting rights of 10% or more. Secondly, stakes in foreign companies are taken into account if the directly and indirectly (that is via dependent holding companies) held share capital or voting rights exceed the 50% mark. [more]
December 15, 2015
29
On a global comparison, business regulation in the EU is quite transparent. Looking at four basic areas that affect firms’ operations, i.e. fees for starting a business, transferring property, construction permits and getting access to electricity, it is easy to access information on these fees. While there are some differences across the four categories – finding out about fees to start a business is easiest while checking on charges to obtain building permits can be trickier – the overall level of transparency is quite high. [more]
October 27, 2015
30
Dependency ratio bottomed out in most advanced and most of the larger emerging economies sometime during the past 10-20 years. The dependency ratio is the ratio of people younger than 15 or older than 64 (so-called dependents) to those aged 15-64 (working-age population). Even China’s dependency ratio hit its sweet spot in 2010 and will rise rapidly over the coming decades. [more]
August 7, 2015
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31
It is the classical dilemma of any currency union that a single monetary policy cannot possibly be appropriate for everybody if members are at very different stages of the business cycle. To get a feel for the scale of monetary (mis-)alignment, we calculate central bank rates as implied by a modified Taylor rule. [more]
July 3, 2015
Analyst:
33
In 2014 the Chinese spent nearly USD 170 bn on tourism services abroad. This makes them runaway leaders in the spending statistics ahead of tourists from the US (USD 112 bn) and Germany (USD 92 bn). The growth rate recorded by China over recent years has been particularly impressive: between 2000 and 2014 the Chinese increased their international tourism spending by an average of 20% per year. [more]
April 20, 2015
35
In Europe, Switzerland and Germany have long trailed at the bottom of the league in terms of residential ownership, despite increases versus the 1990s. The reasons for this are complex: both countries have a relatively well developed rental market – to some extent the reason for and the consequence of the lower owner share. [more]
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