Isabel Schnabel goes behind the scenes of ECB's Market Operations
Channel: European Central Bank
Date: 2022-10-10

Today we go behind the scenes in market operations here at the ECB. 
 
The market floor is where our colleagues put our monetary policy decisions into practice.
 
In the last two Governing Council meetings we raised our key interest rates to bring inflation back to our 2% target [target emoji] Banks can deposit or borrow money at the ECB at those interest rates.
 
We also buy bonds. When we buy a bond from a bank, the bank in turn receives money on their ECB account.
 
Higher rates make it more expensive for banks to borrow from us, which in turn raises the rates people and firms have to pay on their loans. 
 
This is one of the ways Isabel Schnabel and our colleagues in market operations contribute to our main task – keeping prices stable in the euro area.

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