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Defining and implementing the Eurosystem’s monetary policy

The introduction of the euro has meant that the national central banks of countries participating in the Economic and Monetary Union (EMU) now share their monetary sovereignty.

The Governing Council of the European Central Bank (ECB), which consists of the governors of the national central banks of euro area countries, is responsible for defining and implementing monetary policy throughout the area with the objective of maintaining price stability.

Price stability is, according to a statement by the Governing Council on 8 May 2003, defined as a year-on-year increase in the Harmonised Index of Consumer Prices (HICP) of below 2%, with the aim to maintain inflation at levels close to 2% over the medium term.