Google trend - EZB Leitzinsen

EZB Leitzinsen - 10 things to know with detail

• The European Central Bank (EZB) sets the main refinancing rate, also known as the key interest rate or the Leitzinsen, which is the interest rate at which commercial banks can borrow money from the ECB.
• The main refinancing rate is one of the key tools used by the ECB to control inflation and stimulate economic growth in the Eurozone. By increasing or decreasing the interest rate, the ECB can influence borrowing and spending in the economy.
• The main refinancing rate is currently set at 0%, which means that commercial banks can borrow money from the ECB at no cost. This is aimed at encouraging banks to lend money to businesses and consumers, thereby stimulating economic activity.
• The ECB also sets two other interest rates: the deposit facility rate and the marginal lending facility rate. The deposit facility rate is the interest rate at which banks can deposit money with the ECB, while the marginal lending facility rate is the interest rate at which banks can borrow money from the ECB overnight.
• The main refinancing rate is typically reviewed and adjusted by the ECB's Governing Council at its monetary policy meetings, which are held around every six weeks. Changes to the interest rate are announced immediately after the meeting.
• The main refinancing rate has been at historically low levels since the global financial crisis in 2008, as the ECB has sought to stimulate economic growth and inflation in the Eurozone. In March 2016, the ECB even introduced negative interest rates to encourage banks to lend money rather than hold onto it.
• The main refinancing rate is just one of the tools used by the ECB to conduct monetary policy. The ECB also engages in quantitative easing, which involves buying government bonds and other assets to inject money into the economy.
• Changes in the main refinancing rate can have a direct impact on borrowing costs for businesses and consumers. When interest rates are low, borrowing money becomes cheaper, which can encourage investment and spending.
• The main refinancing rate is closely watched by financial markets and economists as an indicator of the ECB's monetary policy stance. Expectations about future changes in interest rates can influence bond yields, exchange rates, and stock prices.
• The main refinancing rate is just one of the factors that influence interest rates in the Eurozone. Market forces, economic data, and geopolitical events also play a role in determining borrowing costs for businesses and consumers.