25 Mar 2014
ECB adopting new voting system - Rabobank
FXStreet (Guatemala) - Analysts at Rabobank explained that with the accession of the next country to the Eurozone currently projected to be Lithuania, which is on track for adoption of the single currency on January 1st 2015– the European Central Bank will adopt a rotational voting system.
Key Quotes:
“…where not all of the governors will have a vote at each meeting”.
“We ponder whether there is any impact on the conduct of monetary policy”.
“While we do not believe that the new voting system will bring change to the way the ECB conducts its monetary policy, we do see a potential change in the way market participants will form expectations about policy actions”.
“We argue that markets may place more emphasis on some particular meetings, based on the composition of the voting members. These meeting dates could be accompanied by larger market volatility while uncertainty and volatility around other meetings could decrease”.
Key Quotes:
“…where not all of the governors will have a vote at each meeting”.
“We ponder whether there is any impact on the conduct of monetary policy”.
“While we do not believe that the new voting system will bring change to the way the ECB conducts its monetary policy, we do see a potential change in the way market participants will form expectations about policy actions”.
“We argue that markets may place more emphasis on some particular meetings, based on the composition of the voting members. These meeting dates could be accompanied by larger market volatility while uncertainty and volatility around other meetings could decrease”.