Banco de España Blog

Using a simple format and plain language, the Banco de España Blog seeks to make our work more accessible to the general public. It allows us to share our analysis of economic and financial issues and the ins and outs of the Banco de España’s tasks and activities with all those keen to learn more.

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How are ECB interest rates passed through to the financial system? The Eurosystem’s new operational framework

27/06/2024 Ricardo Gimeno and Enrique Esteban

The ECB’s monetary policy decisions are implemented under the operational framework, that steers market rates to bring them into line with the Eurosystem’s key interest rates. The ECB reviewed this framework in March 2024 to adapt it to the changing monetary policy environment.

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