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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What does a shrinking central bank balance sheet mean for your pocket?

27/02/2024 Galo Nuño

The balance sheets of the European Central Bank (ECB) and the other euro area central banks have been shrinking since 2022 due to the phasing out of the past decade’s expansionary monetary policy measures. This has an impact on interest rates in the economy and therefore affects everyone directly.

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