The Money Market Fund Regulation (EU Regulation 2017/1131 – MMFR) requires the Commission to submit a report to the co-legislators assessing the adequacy of this Regulation from a prudential and economic point of view.
The following questionnaire aims at complementing the information collected by other initiatives and work (including recent work by ESMA, ESRB/ECB, FSB) on the functioning of the existing rules on money market funds, in particular about the impact of the MMFR on the different economic aspects of MMFs and the role of MMFs in the EU economy.
The consultation will end on 13 May 2022.
The Governing Council of the European Central Bank has published its new monetary policy decisions for April 2022.
In particular, the ECB points out, Russia’s aggression against Ukraine is causing enormous suffering. It is also affecting the economy, in Europe and beyond.
The conflict and the associated uncertainty are weighing heavily on the confidence of businesses and consumers. Trade disruptions are leading to new shortages of materials and inputs. Surging energy and commodity prices are reducing demand and holding back production.
How the economy develops will crucially depend on how the conflict evolves, on the impact of current sanctions and on possible further measures. At the same time, economic activity is still being supported by the reopening of the economy after the crisis phase of the pandemic. Inflation has increased significantly and will remain high over the coming months, mainly because of the sharp rise in energy costs.
Regarding actions to be taken in the coming months:
  • monthly net purchases under the APP will amount to €40 billion in April, €30 billion in May and €20 billion in June;
  • the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.00%, 0.25% and -0.50% respectively;
  • the Governing Council intends to reinvest the principal payments from maturing securities purchased under the PEPP until at least the end of 2024. In any case, the future roll-off of the PEPP portfolio will be managed to avoid interference with the appropriate monetary policy stance;
  • the Governing Council will continue to monitor bank funding conditions and ensure that the maturing of operations under the third series of targeted longer-term refinancing operations (TLTRO III) does not hamper the smooth transmission of its monetary policy.