Account of the monetary policy meeting of the Governing Council of the EECB in Frankfurt am Main Account of the monetary policy meeting of the Governing Council of the EECB in Frankfurt am Main

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Account of the monetary policy meeting of the Governing Council of the EECB in Frankfurt am Main

March 5, 2026-Held on Wednesday and Thursday, 4-5 February 2026
1. Review of financial, economic and monetary developments and policy options-Financial market developments
Ms Schnabel started her presentation by noting that, since the Governing Council's previous monetary policy meeting on 17-18 December 2025, geopolitical uncertainty had spiked and trade policy uncertainty had rebounded briefly to summer 2025 levels.

Stock market volatility had, however, edged up only slightly, far less than during previous stress episodes, while bond market volatility had hardly reacted to the risk shocks and had continued its downward trajectory.

Investor risk appetite had also remained largely unaffected by the recent turbulence, and risk appetite indices for the euro area and the United States stood near their highest level since the global financial crisis of 2008.

Two factors explained the overall contained market reaction. The first factor had been a change in the reaction to risk-off shocks, with investors appearing to be increasingly looking through the noise.

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Source: ECB (European Central Bank)


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