ECB adjusts remuneration of minimum reserves

- PRESS RELEASE

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ECBECB
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https://www.ecb.europa.eu//press/pr/date/2023/html/ecb.pr230727~7206e9aa48.en.htmlhttps://www.ecb.europa.eu//press/pr/date/2023/html/ecb.pr230727~7206e9aa48.en.html
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Friday, July 28, 2023
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Review, Maintenance, European Central Bank, OJ, DFR, Communication, Government Council for Foreign Affairs and Defence, Central bank, Frankfurt, ECB, Council, Efficiency, Credit, Remuneration, Reproduction, MRO, Auction, Bank, Nightclub, EU, Eurosystem
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GERMANY
Summary
Key Points: 
  • - PRESS RELEASE
    ECB adjusts remuneration of minimum reserves
    27 July 2023
    - Minimum reserves to be remunerated at 0%
    - Change preserves the effectiveness and improves the efficiency of monetary policy
    The Governing Council of the European Central Bank (ECB) today decided to set the remuneration of minimum reserves at 0%.
  • Minimum reserves are reserve balances that credit institutions are required to hold with their Eurosystem national central bank on average over a maintenance period.
  • In October last year, the Governing Council decided to reduce the remuneration of minimum reserves from the rate on the main refinancing operations (MRO rate) to the DFR.
  • Notes
    - The ECB has published explanations of minimum reserves and the deposit facility rate.
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