Monetary policy interventions announced today (13.3.2024) by the European Central Bank ( ) in order to halt the gradual decline in banks, adjusting the interest rate on the deposit facility. This liquidity will be provided with a wide combination of instruments to ensure that the implementation of the policy will continue to be effective, robust, flexible and efficient in the future, as the balance sheet of the ECB is normalised. Main refinancing operations (MFIs) will play a central role in meeting bank liquidity requirements and will continue to be carried out through fixed rate auctions with full allocation of an amount against a broad collateral framework. The difference between the interest rate of the MCRs and the interest rate of the deposit facility will be reduced to 15 basis points from 18 September 2024. The main parameters of the operational framework are to be reviewed in 2026, based on the experience gained in the interim period, or earlier, if necessary. The purpose of the operational framework is to guide short-term interest rates on the financial markets in accordance with the Governing Council decisions on monetary policy.
ESF: Monetary measures are coming to halt the decline in banking liquidity
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