ECB (European Central Bank)
The ECB (European Central Bank) conducts the monetary policy of the 21 euro area countries. Its Governing Council (the 6 members of the Executive Board and the 21 national central bank governors) sets rates 8 times a year: a statement at 2:15 p.m. Frankfurt time, which is also Paris time, then a press conference at 2:45 p.m. Of the three policy rates it sets, the deposit facility rate is the one used to steer policy: it is the rate paid on banks’ overnight deposits. It has stood at 2.50% since September 2026, a level maintained on October 29. Its mandate has price stability as its primary objective, which the ECB itself translates into a symmetric target of 2% inflation over the medium term, measured by the HICP. Markets compare the decision with expectations, then scrutinize the quarterly projections and the press conference, which move the euro. On October 29, 2026, Christine Lagarde, president since 2019, announced her early departure, set for February 7, 2027. Upcoming releases: the economic calendar.
See also
The rate at which a central bank lends to commercial banks — the “rent on money.”
The set of levers a central bank uses to steer inflation and employment.
The euro area price index on which the ECB sets its 2% inflation target.
The 12-member committee that sets the US policy rate, 8 times a year.
The UK central bank, whose 9-member committee sets the Bank Rate.
The two monetary policy stances: restrictive (hawkish) or accommodative (dovish).