Monetary Policy

  • deposit rate

    The deposit rate is the remuneration available to eligible banks when they leave excess cash with the central bank rather than lending or investing it elsewhere. …

  • effective lower bound (ELB)

    The effective lower bound (ELB) is the lowest level to which a central bank can reduce its policy rate before further cuts lose much of their …

  • eligible assets (eligible collateral)

    Eligible assets are forms of collateral that counterparties may provide against credit supplied by the Eurosystem. Their use is subject to the conditions of the Eurosystem …

  • equilibrium real interest rate

    The equilibrium real interest rate, often termed the natural rate, is the inflation-adjusted policy rate compatible with balanced economic conditions: output is close to its sustainable …

  • ERM II fluctuation margins

    Within ERM II, fluctuation margins specify the exchange-rate range around a participating currency’s agreed central rate against the euro. The margins are set jointly by the …

  • euro

    The euro is the common currency of the EU countries that belong to the euro area. It is used for payments within those countries and for …

  • European Currency Unit (ECU)

    The ECU was the European monetary system's composite unit of account before the third stage of Economic and Monetary Union. Its value derived from specified quantities …

  • European Parliament

    The European Parliament is the EU’s elected parliamentary body and participates in the adoption of Union legislation, with its influence depending on the procedure applicable to …

  • fine-tuning operation

    In Eurosystem monetary policy, a fine-tuning operation is an ad hoc market intervention used when liquidity conditions change unexpectedly. It is arranged as needed rather than …

  • fixed rate tender

    A fixed-rate tender is a central-bank liquidity operation conducted at a rate set beforehand. Participating counterparties submit bids stating the volume of funds they wish to …