European Central Bank (ECB) limits the number of meetings with banks and hedge funds in the days and hours before the upcoming monetary policy decisions. This shows the calendar of meetings, the ECB has provided the agency Bloomberg.
In November, the ECB acknowledged that shortly before important decisions held meetings with bankers and executives from the financial sector. Meetings were held partly in the period in which they denied principle discussions about monetary policy issues. It is claimed that some banks have secured thus a competitive advantage.
Published today calendar of meetings shows that the ECB wants to dispel the doubts that provides important banks access to important market information. In recent months, the central bank strengthened its rules of conduct and to publish data, the agency recalled.
In the seven days prior to 22 October, when a meeting of the ECB Governing Council, members of the Executive Board met with representatives of the financial community. The meeting on 22 October was important because then the ECB made clear signal of incentives were announced officially on 3 December.
Only a few months ago the situation looked quite different. In May they appeared criticism after board member Benoit Coeur talk about expanding bond purchases by the Bank during an informal dinner, which was attended by leading bankers, thereby cause a large movement of rates in the financial markets. Other market players learned about the statements until the next morning and so were able to respond with a lag.
Published today calendar also shows that the board members seemed comply with the new rules under which they are forbidden speeches on monetary issues within seven days before the day you need to take decisions.
According to the calendar, there were no meetings with fund managers and hedge funds in period t. Called “silent days,” but in September and October, some central bankers met with financial institutions. For example Coeur had conversations with Moore Europe Capital Management, Paulson & Co and Algebris Investments. According to the ECB during meetings he talked about “trends in financial markets.”