Changes to the framework for implementation of monetary policy in the euro area
The Governing Council of the European Central Bank (ECB) today adopted Guideline on monetary policy instruments and procedures of the Eurosystem (ECB/2008/13), amending the Guideline ECB/2000/7. The amendments pertain to:
- Annex I of the Guideline, entitled “The implementation of monetary policy in the euro area: General documentation on Eurosystem monetary policy instruments and procedures” (referred to as the “General Documentation”), and
- Annex II of the Guideline, setting out the “additional minimum common features”.
The amendments relate, in particular, to the following two topics:
- Risk control measures: The refinements to the risk control framework already announced on 4 September 2008, which will enter into force on 1 February 2009, will be reflected in the General Documentation.
- Minimum reserve requirements: The General Documentation will be updated in line with the changes to Regulation ECB/2003/9 of 12 September 2003 on the application of minimum reserves, approved by written procedure by the Governing Council on 22 October 2008. These changes primarily aim at clarifying the criteria for granting exemptions from reserve requirements.
The amendments to Annexes I and II of Guideline ECB/2000/7 relating to the above items will apply from 1 February 2009.
The Governing Council amends Guideline ECB/2000/7 on an annual basis, in order to capture in a single legal act the relevant decisions on monetary policy instruments and procedures taken in the course of the previous 12 months.
Moreover, the measures which have been decided by the Governing Council on 15 October 2008 to further expand the collateral framework and enhance the provision of liquidity, are being implemented via Regulation of the European Central Bank on temporary changes to the rules relating to eligibility of collateral (ECB/2008/11), adopted by the Governing Council today. The Regulation will have immediate effect and apply for a limited period of time. It will be eventually replaced by Guideline of the European Central Bank on temporary changes to the rules relating to eligibility of collateral (ECB/2008/12), adopted also today by the Governing Council, the provisions of which are identical and which will enter into force upon completion of the adaptation of the monetary policy documentation by all Eurosystem members and apply until 31 December 2009.
The above-mentioned legal acts can be obtained via the ECB’s website www.ecb.europa.eu. The updated version of the General Documentation will be published via the ECB’s website at a later stage.