European Central Bank (European Central Bank - ECB), established in 1998, is the only central bank's monetary policy operating area using the euro, covering 18 countries.
The mission of the ECB's monetary policy formulation and implementation for Eurozone. Besides the central banks of the Member State issuing and distribution and money, ensuring and promoting payment systems in the region, maintaining foreign exchange reserves and to closely monitor the activities of the banking system. The main objective of the ECB is to maintain price stability Eurozone, guaranteed rate of inflation in the medium term ≈2%.
Board of Directors ECB interest rates to choose 3 types of operators, such as interest rate deposits, interest rates and refinance rates.
Lending rates: the interest rate that the ECB used to provide credits, usually overnight, the financial institutions in the Eurozone, while the organization It has the demand for capital.
Interest rates: the interest rate that banks enjoy when they send money in system EUROSYSTEM, usually overnight.
refinance interest rates are the interest rates for the ECB loans to financial institutions in the euro area in Europe, such as banks, as these organizations have difficulty in short-term liquidity. ECB may affect the market interest rate changes due to the refinancing.
The Managing Board is the main decision-making bodies of the ECB, including decisions related to changes in interest rates. Board of Directors consists of six members of the Executive Board, plus the governors of the national central bank members.
Every month, the Board of Directors ECB will conduct a review, analyze, evaluate the situation in the region as well as the world, thereby making the decisions relating to monetary policy, including decisions on interest rates. After the meeting, decisions, changes will be notified and the Governor of the ECB explain the reasons for the change, but also economic forecast when such changes take effect.
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