It appears that no significant changes were implemented and central banks decided to continue with the existing monetary policies to support the economic recovery during the coronavirus crisis.
On Wednesday, December 9, the Bank of Canada released its Rate Statement. The Bank voted to maintain the existing monetary policy.
According to the official release: "The Bank of Canada today maintained its target for the overnight rate at the effective lower bound of ¼ percent, with the Bank Rate at ½ percent and the deposit rate at ¼ percent. The Bank is maintaining its extraordinary forward guidance, reinforced and supplemented by its quantitative easing (QE) program, which continues at its current pace of at least $4 billion per week."
On Thursday, December 10, the European Central Bank (ECB) revealed its monetary policy decisions:
Wednesday, December 16, the Federal Reserve published the FOMC Statement.
According to the official release: "The Committee expects to maintain an accommodative stance of monetary policy until these outcomes are achieved.
The Committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent and expects it will be appropriate to maintain this target range until labor market conditions have reached levels consistent with the Committee's assessments of maximum employment and inflation has risen to 2 percent and is on track to moderately exceed 2 percent for some time.
In addition, the Federal Reserve will continue to increase its holdings of Treasury securities by at least $80 billion per month and of agency mortgage-backed securities by at least $40 billion per month until substantial further progress has been made toward the Committee's maximum employment and price stability goals. These asset purchases help foster smooth market functioning and accommodative financial conditions, thereby supporting the flow of credit to households and businesses."
On Thursday, December 17, the Bank of England issued its Monetary Policy Summary.
According to the official release: "The Bank of England's Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment. At its meeting ending on 16 December 2020, the Committee judged that the existing stance of monetary policy remains appropriate.
The Committee voted unanimously for the Bank of England to maintain the stock of sterling non-financial investment-grade corporate bond purchases, financed by the issuance of central bank reserves, at £20 billion.
The Committee voted unanimously for the Bank of England to continue with the programme of £100 billion of UK government bond purchases, financed by the issuance of central bank reserves, and also to commence the previously announced programme of £150 billion of UK government bond purchases, financed by the issuance of central bank reserves, maintaining the target for the stock of these government bond purchases at £875 billion and so the total target stock of asset purchases at £895 billion."
On Thursday, December 17, the Swiss National Bank (SNB) revealed it would maintain expansionary monetary policy. The Bank decided to keep the Policy Rate and the interest on sight deposits at the SNB at -0.75%.
According to the official release: "In light of the highly valued Swiss franc, the SNB remains willing to intervene more strongly in the foreign exchange market. In so doing, it takes the overall exchange rate situation into consideration. Furthermore, it is supplying generous amounts of liquidity to the banking system via the SNB COVID-19 refinancing facility."
Initial reaction on the market:
On Friday, December 18, the Bank of Japan published its Statement on Monetary Policy.
According to the Statement: "The Bank of Japan judged it appropriate to extend the duration of the Special Program to Support Financing in Response to the Novel Coronavirus (COVID-19) by 6 months and make adjustments to the program, with a view to continuing to support financing, mainly of firms. To this end, at the Monetary Policy Meeting (MPM) held today, the Policy Board of the Bank decided upon the following. Depending on the future impact of COVID-19, the Bank will consider further extension of the program if necessary."
More detailed information is available on the Bank's official website.
Initial reaction on the market: