European Central Bank

SHOTLIST AFP VIDEOGRAPHICS IMAGES: 01:41 - Revolving shot of the ECB building.- Photo of Mario Draghi appears.- Shot showing the building over a map of Europe.- Symbols of central banks pop up.- Yellow arrows flow from the ECB towards other European countries.- Zoom in on a map of the US, symbol pops up representing the Federal Reserve.- Two red synbols appear on either side of the bank.- Return to the ECB building overa map of Europe. Yellow stars revolve over the building.- Red symbol representing inflation.- Map disappears. Bank shown with a red symbol for interest rates.- Symbol for a bank appears. Yellow arrow from the ECB to the bank.- Bank notes swirl in the background.- Supermarket trolley appears. AFP TEXT:September 9, 2020 The European Central Bank is expected Thursday to prepare the ground for new stimulus measures, armed with a new set of economic forecasts and amid signs of a resurgence of the coronavirus pandemic. The ECB will publish its latest assessments on the eurozone's growth prospects through to 2022, which will be closely scrutinised for signs of whether the worst of the pandemic's devastating economic impact is over. Inflation trends will also be key as fears of deflation are fuelled by sinking oil prices and consumers putting off purchases in the grim economic climate. The Frankfurt-based institution has unleashed unprecedented firepower to help the bloc fight its worst crisis. It is in the process of pumping 1.35 trillion euros ($1.59 trillion) into the eurozone economy through its pandemic bond-buying programme, known as PEPP...(continues) SCRIPT EN:Updated July 4, 2019The European Central Bank was created in 1998 to represent the interests of countries belonging to the Eurozone. Its president is Frenchwoman Christine Lagarde.With its headquarters in Frankfurt in Germany, the ECB is at the head of the Eurosystem of central banks of the eurozone member states. The monetary policy of each member state is therefore managed by the ECB. Unlike the United States, where the central bank -- known as the Federal Reserve -- has two main objectives, keeping unemployment down and controlling inflation, the ECB’s main task is to ensure prices in the euro area remain stable, keeping inflation at a reasonable target rate of around two percent.It does this by fixing interest rates.These decisions have a direct impact on the credit policies of the banking institutions. For example in the case of overheating eurozone economies, the ECB raises interest rates to cool inflation. Higher rates prompt banks to limit lending by setting unattractive rates. On the other hand, to encourage growth in a struggling eurozone, the ECB can cut interest rates to incite banks to issue clients with more credit, thereby encouraging investment.The ECB lends to banks but in theory is not allowed to lend directly to eurozone governments themselves, as this would amount to financing member state deficits. Sources : ECB, Minefi, touteleurope.eu SCRIPT FR: La Banque centrale européenne a été créée en 1998 pour gérer la politique monétaire de la zone euro. Elle est aujourd’hui présidée par la Française Christine Lagarde.Depuis son siège à Francfort, en Allemagne, elle est à la tête de l’Eurosystème regroupant les banques centrales nationales des membres de la zone euro.Étroitement associées à sa gouvernance, elles sont les relais dans chaque pays de la politique de la BCE.Les décisions des banques centrales ont un impact sur l’économie réelle. La banque centrale des Etats-Unis a par exemple deux objectifs principaux : Le maintien d’un taux de chômage basEt la maîtrise de l’inflation.La BCE, en revanche, privilégie la stabilité des prix. Elle cherche avant tout à maintenir l’inflation dans la zone euro autour de 2%. Quels instruments met-elle en œuvre pour atteindre son objectif ?Principalement, elle fixe les taux d’intérêts.Ses décisions vont donc avoir un impact direct sur la politique de crédit des établissements bancaires :En cas de surchauffe de l’économie, la BCE augmente ses taux : avec des taux élevés, les banques limitent les crédits, et pratiquent des taux peu attractifs.En cas de panne de croissance, la BCE abaisse au contraire ses taux, pour encourager les banques à accorder plus de crédits à des taux plus intéressants, ce qui favorise l’investissement. Si la BCE peut prêter aux banques, elle n’a, en théorie, pas le droit de prêter aux États-membres. Cela reviendrait à faire marcher la « planche à billets » pour financer leur déficit. Sources : ecb.europa.eu, BCE, Minefi, touteleurope.eu