Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/278496 
Year of Publication: 
2023
Series/Report no.: 
MAGKS Joint Discussion Paper Series in Economics No. 12-2023
Publisher: 
Philipps-University Marburg, School of Business and Economics, Marburg
Abstract: 
Most meetings of the Governing Council of the ECB take place intra muros at the ECB's premises in Frankfurt. Some meetings, however, are held extra muros, i.e. outside Frankfurt, hosted by one of the national central banks. This paper uses high-frequency surprises from meeting days to show that the standard deviation of surprises is higher when the ECB meets intra muros. This difference is mostly due to larger timing, forward guidance and QE surprises when meeting in Frankfurt. We show that the transmission of policy surprises to longer-term interest rates is significantly weaker when meeting extra muros. In addition, when the meeting takes place extra muros, the wording of the ECB communication during the press conference is significantly more similar to the preceding meeting. The results suggest that the important decisions are taken in Frankfurt and that the ECB avoids large changes to the policy path when meeting extra muros. The difference across meeting types has consequences for the macroeconomic impact of monetary policy.
Subjects: 
monetary policy
expectations
central bank communication
monetary policy committee
text analysis
JEL: 
E58
E43
Document Type: 
Working Paper

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