The European Central Bank (ECB) is the central bank of the European Union countries which have adopted the euro. Our main task is to maintain price stability in the euro area and so preserve the purchasing power of the single currency.

The European Central Bank's response to the Federal Reserve's actions can partly be attributed to concerns about imported inflation from the USA. Specifically, if the FED increases its policy rates while the ECB remains static, it could lead to a depreciation of the euro against the dollar.

On 13 March 2024 the ECB announced changes to its operational framework for implementing monetary policy. Effective 18 September 2024, the spread between the rate on the main refinancing operations and the deposit facility rate was reduced to 15 basis points.

Our main aim at the ECB is price stability. We serve people living in the euro area by working to preserve the value of the euro. In this section you can learn about our policy strategy, the tools we use and the impact they have on your day-to-day life. We also follow the financial markets.

Nov 12, 2024 · In this note, we show that high interest rates have depressed economic activity more in those euro-area countries with large manufacturing sectors. Our analysis also suggests that activity in those countries stands to gain more from lower interest rates.

Jun 6, 2024 · The European Central Bank cut its key interest rate by a quarter-point, moving ahead of the U.S. Federal Reserve as central banks around the world lean toward lowering borrowing costs — a shift with far-reaching consequences for home buyers, savers and investors.

Mar 28, 2024 · In the complex panorama of global financial governance, the Federal Reserve (Fed) and the European Central Bank (ECB) stand as pivotal entities steering the economic fate of their respective...

Nov 29, 2006 · Current conditions in the United States and Europe are quite distinct. In the U.S., the world’s largest economy, the Federal Reserve has carried out 17 consecutive increases in interest rates, raising the price of money from 1% in the middle of 2004 to 5.25% today.

The European Central Bank (ECB) and Federal Reserve (Fed) have taken similar approaches over the past 18 months to tightening monetary policy to tackle high inflation. Since early 2022, the Fed has raised its policy rate by 5.25% and the ECB has raised its …

Jul 28, 2023 · This note examines passthrough from European Central Bank (ECB) policy rates to bank deposit rates across euro-area banking sectors. 2 We first review bank deposits in the euro area and show that, historically, passthrough from policy rates into deposit rates has been sluggish and, depending on the maturity of deposits, incomplete.