IMPORTANCE OF THE EUROPEAN CENTRAL BANK REPORTS AS MONETARY POLICY INSTRUMENT IN THE CONTEXT OF LOW INTEREST RATES

Modern central banks utilize various monetary instruments in implementation of their monetary policies, among which the central banks reports are of growing importance in relation to some more conventional measures and instruments (such as reference interest rates, foreign currency interventions and short-term interventions in different areas of financial markets). The central bank reports or, in this case, reports of the European Central Bank (ECB), are issued during the world financial and economic crisis and Eurozone crisis. In the period of extremely low, even zero interest rates, i.e. during and after the world crisis, the ECB interest rate channel is inefficient, and reports as monetary policy instrument are more efficient in relaying information to the financial markets participants on the monetary policy direction. They impact - direct their expectations making the ECB monetary policy more efficient. The aim of this paper was to prove the significance of the ECB reports impact onto financial markets, through quantitative analysis of relevant literature and monetary policy decisions as well as through analysis of empirical research and indicators such as KOF Monetary Policy Communicator of the Swiss Economic Institute (KOF MPC). The research results indicate the ECB reports play an important role in implementation of the ECB contemporary monetary policy, and their influence, even the slightest, is important in directing the expectations and the financial markets participants.