PRESS RELEASE

Monetary policy decisions

21 June 2000

At today's meeting the Governing Council of the ECB decided that the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 5.25% and 3.25% respectively.

As announced on 8 June 2000, the forthcoming main refinancing operations of the Eurosystem will be conducted as variable rate tenders, applying the multiple rate auction procedure, with a minimum bid rate of 4.25%. This rate is the same as that which prevailed for the two fixed rate tender operations settled on 15 and 21 June 2000.

The Governing Council also decided that, for the longer-term refinancing operations to be conducted in the second half of 2000, the Eurosystem intends to allot an amount of EUR 15 billion per operation. This amount takes into consideration the expected liquidity needs of the banking system of the euro area in the second half of 2000 and the desire of the Eurosystem to continue to provide the bulk of its refinancing of the financial sector through its main refinancing operations.

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