# invest in fin markets  2. 11. 2021

Minutes of ECB meeting


At its meeting last week, the European Central Bank (ECB) left its monetary policy unchanged, as expected. It is very likely to maintain its key interest rate in the negative zone for at least another year, despite a sharp rise in inflation in the euro area, suggesting a divergence with other central banks, such as the US Federal Reserve, which already communicates that it will gradually end the policy of cheap money. The ECB has reaffirmed its plan to continue buying bonds, pushing borrowing costs to record lows. The ECB still considers the recent rise in inflation in the euro area above its 2% target to be temporary and expects price pressures to ease next year.

ECB President Christine Lagarde admitted on Thursday that the recent rise in inflation in the eurozone to 3.4% in September will take longer than originally expected. She identified energy prices and problematic supply chains as the main attributes. According to the ECB, the favorable financing conditions created by its very loose monetary policy are still crucial for the euro area economy to recover from the COVID-19 pandemic. She added that high energy prices were likely to stabilize when stocks were restored and that supply chain bottlenecks would ease over time. The ECB said in a statement that it would keep its key interest rate at minus 0.5% and will continue to buy bonds under the € 1.85 trillion asset purchase program at least until March 2022.

The Board of Governors will decide on the fate of the Pandemic Emergency Purchase Program (PEPP) at its December meeting (16 December). After the meeting, economists also revised their forecasts and now forecast price growth in the euro area at 2.3% this year, 1.8% in 2022 and 1.6% in 2023.

The European Central Bank (ECB) set the euro reference rate at $ 1.1593 on Thursday afternoon.

Ing. Róbert Bučič
Portfolio manager, IAD Investments

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This material is a marketing announcement. Before making any investment decision, review the sales prospectus, articles of association and key investor information document for IAD Investments, reports. spol., a.s. (hereinafter referred to as “IAD”) in the Slovak language at the registered office of IAD, at points of sale, at the registered office of the depositary or at www.iad.sk. For more information, contact your financial intermediary or www.iad.sk.

The value of the investment in the mutual fund may also decrease and the return on the amount originally invested is not guaranteed. There is also a risk associated with investing in mutual funds. In accordance with the mutual fund statutes, the share of securities issued by states and international organizations listed in the annex to the statutes of individual mutual funds may exceed 35% of the value of the fund’s assets, which may reach up to 100%. The IAD is obliged to pay out the unit certificate of the Prvý realitný fond and the Korunový realitný fond without delay, but no later than within an extended period of 12 months. Assets in the fund Prvý realitný fond is invested mainly in real estate, including accessories for the purposes of their management and sale, in ownership interests in real estate companies and in liquid financial assets, the economic nature of which results in close links with the real estate market. Korunový realitný fond has at least 85% of its assets continuously invested in the units of the Prvý realitný fond.