Terms and conditions in connection with the EBS

In order to achieve its monetary policy objectives, the Eurosystem has at its disposal a set of monetary policy instruments. These include liquidity-providing and liquidity-absorbing open market operations which are settled by the Bundesbank, to the extent of its mandate, with counterparties established or resident in Germany.

Burkhard Balz, the Executive Board member responsible for the CIC, draws on his many years of experience to bring personal insights to international central bank dialogue.

Real interest rates are interest rates that have been adjusted for developments in purchasing power. They are broadly calculated as the difference between the nominal interest rate and the inflation rate (in the case of low interest rates and relatively stable prices).