Narratives in ECB Press Conferences

Communication is essential for central banks. For the European Central Bank (ECB), the press conference immediately after the Governing Council meeting is the primary communication device. It consists of a prepared statement explaining the decision, followed by a Questions and Answers session with journalists. What are the main communication patterns in ECB press conferences? Do shifts in communication patterns affect stock market volatility on the Governing Council meeting days? Using the algorithms for text data, a new Big-Data-based analysis in the EconPol Forum 1/2023 link the press conference text features to financial market reactions.