Monetary policy decisions

Meetings

The Governing Council meets twice a month ( Calendar). At its first meeting, as a rule, the Governing Council assesses the economic situation and the stance of the monetary policy. Decisions on the key interest rates are normally taken during that meeting.

At its second meeting, the Governing Council focuses mainly on issues related to other tasks and responsibilities of the ECB and the Eurosystem.

Key interest rates

The Governing Council of the ECB sets the key interest rates. The rates determine the stance of the ECB's monetary policy.

The three key interest rates for the euro area:

The interest rate on the main refinancing operations (MROs), which normally provide the bulk of liquidity to the banking system. The Eurosystem may execute its tenders in the form of fixed rate or variable rate tenders.

The rate on the deposit facility, which banks may use to make overnight deposits with the Eurosystem.

The rate on the marginal lending facility, which offers overnight credit to banks from the Eurosystem.

Non-standard measures

Since the intensification of the financial crisis in September 2008, and against the background of rapidly receding inflationary pressures, the ECB has introduced monetary policy and liquidity management measures that are unprecedented in nature, scope and magnitude. These non-standard measures (  Monthly Bulletin, June 2009, p.9-10) adopted by the Governing Council seek to maintain price stability over the medium term and to ensure that inflation expectations remain firmly anchored in line with price stability. The measures support financing conditions above and beyond what could be achieved through reductions in key ECB interest rates.

Press release

After the first meeting of the month, a  press release announcing the decision on the key ECB interest rates is issued at 1.45 p.m. C.E.T.

Press conferences

Shortly afterwards, at 2.30 p.m. C.E.T. , the President and the Vice-President of the ECB hold a  press conference.

Introductory statement

The conference starts with an introductory statement by the President. It provides a comprehensive summary of the assessment of economic and monetary developments and explains the monetary policy decision taken by the Governing Council.

Q&A

After the introductory statement, the President and the Vice-President answer journalists' questions. This provides a platform for the timely explanation of  monetary policy decisions to the public. A transcript of the questions and answers is placed on this website a few hours later.