Interest rates and inflation

General

The stated objective of European monetary policy is to maintain price stability, where price stability is defined as inflation below, but close to, 2%.

Read more about: General

Monetary policy

The Governing Council of the European Central Bank (ECB) sets interest rates in the euro area. The Council consists of the central bank governors of all euro countries plus the ECB Executive Board, with all members having an equal vote. The Eurosystem is responsible for preparing and implementing monetary policy and is made up of the ECB and the euro countries’ central banks.

Read more about: Monetary policy

ECB rates

The ECB Governing Council sets the key interest rates for the euro area on a monthly basis: the (minimum bid) rate on the main refinancing operations that are the basis for money market rates and the rates on the marginal lending facility and the deposit facility.

Read more about: ECB rates

Eligible assets

Assets may serve as collateral for monetary policy operations and intraday lending. Such assets are known as eligible assets and must satisfy eligibility criteria drawn up to protect the Eurosystem against potential credit risk, to increase operational efficiency and to ensure a level playing field for all banks.

Read more about: Eligible assets

Reserve management

De Nederlandsche Bank (DNB) manages over EUR 50 billion in investments, which makes DNB one of the larger asset managers in the Netherlands. DNB's asset management and financial risk management activities has been allocated to the Financial Markets division, which is responsible for DNB’s gold and foreign exchange reserves.

Read more about: Reserve management

Market Intelligence

DNB is active in the financial markets on a daily basis, staying abreast of all relevant developments. In our dealing rooms, our teams are working full-time to implement the ECB's monetary operations. We also operate in the markets in our capacity as manager of DNB’s foreign exchange reserves. Thanks to our contacts with a wide range of market participants and institutions we are able to gather extensive information on the sentiments and developments in the financial markets. Our market intelligence (MI) experts use data from various sources, conduct research and identify new trends and risks to analyse this information and provide DNB with a detailed understanding of the financial markets. This understanding is crucial to ensure that we can make informed policy decisions in DNB’s main  policy areas: financial stability, monetary policy and supervision.

Read more about: Market Intelligence

Weekly statement by the European Central Bank

The weekly statement by the European Central Bank (ECB) provides insight into the ECB’s balance-sheet positions.

Read more about: Weekly statement by the European Central Bank