The similarity of ECB's communication

- This study provides a better understanding of ECB communication and their informational content.
- The similarity of ECB communication has increased with time.
- This similarity facilitates the extraction of forward-looking information by investors.

This article examines the communication of European Central Bank (ECB) at press conferences and its impact on financial markets. We compare consecutive central banker conference speeches and document that the similitude of these speeches has been increasing over time. We find evidence that the similarity of ECB communication has helped stock markets learn from ECB monetary policy.