Important information for monetary policy decisions can undoubtedly be derived from financial market indicators. When considering the usual monetary policy transmission from a change in central bank interest rates to the ultimate monetary policy objective, information derived from financial market indicators as part of regular monetary policy preparations can be divided into the following categories.
See the box entitled “Household saving ratio dynamics and implications for the euro area economic outlook”, in ECB (2021), Eurosystem staff macroeconomic projections for the euro area, June. 20. 0.3% in 2021 and 1.3% in 2022, beyond the measures already factored into the ECB’s baseline for our June projections. Ex-post, i.e.