PRESS RELEASE

Monetary policy decisions

4 March 1999

At today's meeting the Governing Council reviewed the latest monetary, financial and economic developments. Taking into account all the information available, the Governing Council confirmed its earlier assessment of the outlook for price stability. Against this background it decided that for the main refinancing operations to be settled on 10 and 17 March 1999 the same conditions will apply as for the previous ones, i.e. they will be conducted as fixed rate tenders at an interest rate of 3.0%. In addition, the interest rate on the marginal lending facility will continue to be 4.5% and the interest rate on the deposit facility will remain 2.0%.

The Governing Council also decided today that for forthcoming longer-term refinancing operations of the Eurosystem the multiple rate method of allotment will be applied starting from the next such operation (which is to be settled on 25 March 1999) until otherwise indicated.

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