Governing Council of the European Central Bank

Not to be confused with the Executive Board of the European Central Bank.

The Governing Council of the European Central Bank is the main decision-making body of the European Central Bank (ECB) and has "sole responsibility" for formulating monetary policy in the Eurozone.^[1] It comprises the members of the Executive Board of the European Central Bank and the governors of the national central banks (NCBs) of the eurozone countries.

Responsibilities

The Governing Council is responsible for formulating monetary policy for the Eurozone. Specifically:^[2]

Carry out tasks assigned by the ECB and Eurosystem
Formulate monetary policy by making decisions about key interest rates, inflation rate (keep it below but close to 2% over the medium term),^[3] and the supply of the Eurosystem's reserves
Adopt decisions that are necessary to carry out the new banking supervision duties as well as complete draft decisions proposed by the Supervisory Board, which are legally binding for banks under the Single Supervisory Mechanism (SSM)

Meetings

In general, the Governing Council (GC) meets twice a month at the Eurotower in Frankfurt, Germany. The first meeting is the most important and is devoted to the assessment of economic and monetary developments, and every six weeks the ECB President conducts a press conference to explain monetary policy decisions.^[2] According to a 2014 study of the euro-dollar foreign exchange market on days when the GC announces interest rate decisions, there is "strong evidence" that these monetary policy announcements "contain significant news content" based on trading activity.^[4]

At the second meeting, the GC discusses issues concerning other tasks of the ECB and the Eurosystem. The ECB publishes the accounts of the GC's monetary policy meetings.^[2]

According to the Treaty of Rome, the President of the European Council may submit a motion for deliberation to the Governing Council of the ECB.^[5]

Composition

The Governing Council consists of:^[2]

Six members of the ECB's Executive Board
Governors of the national central banks of the 19 Eurozone countries
President of the European Council may and a representative from the European Commission may attend the meetings as observers but the lack voting rights^[6]

Current members

Members of the Governing Council (as of September 2018)^[7]
	Name	Role	Terms of office
Executive Board of the ECB	Mario Draghi	President	1 November 2011	31 October 2019
	Luis de Guindos	Vice-President	1 June 2018	31 May 2026
	Yves Mersch	Member of the Executive Board	15 December 2012	14 December 2020
	Sabine Lautenschläger	Member of the Executive Board	27 January 2014	26 January 2022
	Benoît Cœuré	Member of the Executive Board	1 January 2012	31 December 2019
	Peter Praet	Member of the Executive Board & Chief Economist	1 June 2011	31 May 2019
National Governors	Pablo Hernández de Cos		11 June 2018	10 June 2024
	Jens Weidmann		1 May 2011	31 April 2019
	Jan Smets		11 March 2011	1 January 2019
	Yannis Stournaras		20 June 2014
	François Villeroy de Galhau		1 November 2015
	Gaston Reinesch
	Ewald Nowotny		September 2008	August 31, 2019
	Jozef Makúch		12 January 2010
	Vitas Vasiliauskas
	Olli Rehn		12 July 2018
	Carlos Costa		7 June 2010
	Mario Vella		1 July 2013
	To be appointed
	Ardo Hansson		7 June 2012
	Ilmārs Rimšēvičs		2001
	Klaas Knot		1 July 2011
	Ignazio Visco		1 November 2011
	Chrystalla Georghadji		11 April 2014
	Philip R. Lane		3 November 2015

References

↑ Kurihara, Yutaka (2014). "Do European Central Bank Announcements Influence Stock Prices and Exchange Rates?" (PDF). Journal of Applied Finance & Banking. 4 (4): 1–14.
1 2 3 4 "Governing Council". European Central Bank. Retrieved 12 February 2018.
↑ European Central Bank. "Monetary Policy". Retrieved 11 February 2018.
↑ Michael J. Sager; Mark P. Taylor (November–December 2004). "The Impact of European Central Bank Governing Council Announcements on the Foreign Exchange Market: A Microstructural Analysis". Journal of International Money and Finance. 23 (7–8): 1043–1051. doi:10.1016/j.jimonfin.2004.08.002.
↑ "Treaty Establishing the European Community - Part Three: Community Policies - Title VI: Economic and Monetary Policy - Chapter 3: Institutional Provisions - Article 109b". EUR-Lex. Retrieved 12 February 2018.
↑ "Article 284, Treaty on the Functioning of the European Union". EUR-Lex. Retrieved 12 February 2018.
↑ "Members of the Governing Council". Retrieved 22 September 2018.

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[1] Kurihara, Yutaka (2014). "Do European Central Bank Announcements Influence Stock Prices and Exchange Rates?" (PDF). Journal of Applied Finance & Banking. 4 (4): 1–14.

[gc-2] 1 2 3 4 "Governing Council". European Central Bank. Retrieved 12 February 2018.

[3] European Central Bank. "Monetary Policy". Retrieved 11 February 2018.

[4] Michael J. Sager; Mark P. Taylor (November–December 2004). "The Impact of European Central Bank Governing Council Announcements on the Foreign Exchange Market: A Microstructural Analysis". Journal of International Money and Finance. 23 (7–8): 1043–1051. doi:10.1016/j.jimonfin.2004.08.002.

[5] "Treaty Establishing the European Community - Part Three: Community Policies - Title VI: Economic and Monetary Policy - Chapter 3: Institutional Provisions - Article 109b". EUR-Lex. Retrieved 12 February 2018.

[6] "Article 284, Treaty on the Functioning of the European Union". EUR-Lex. Retrieved 12 February 2018.

[7] "Members of the Governing Council". Retrieved 22 September 2018.