Press Release: Monetary policy decisions

At a meeting of the Governing Council of the ECB on 8.6.00 the following monetary policy decisions were taken:
The interest rate on the main refinancing operations of the Eurosystem would be raised by 0.50 percentage point to 4.25% and applied in two operations (which will be conducted as fixed rate tenders) to be settled on 15 and 21.6.00.
The interest rate on the marginal lending facility would be raised by 0.50 percentage point to 5.25% with effect from 9.6.00.
The interest rate on the deposit facility would be raised by 0.50 percentage point to 3.25% , with effect from 9.6.00.
Starting from the operation settled on 28.6.00, the main refinancing operations of the Eurosystem would be conducted as variable rate tenders, applying the multiple rate auction procedure. The Governing Council decided to set a minimum bid rate for these operations equal to 4.25% . This is the same rate as that which will prevail for the two fixed rate tenders to be implemented following the decision of 8.6.00.

• Primary Source

http://www.ecb.int/press/pr/activities/ecb/html/index.en.html http://www.ecb.int/press/pr/activities/ecb/html/index.en.html

http://news.bbc.co.uk/hi/english/business/newsid%5F782000/782213.stm http://news.bbc.co.uk/hi/english/business/newsid%5F782000/782213.stm

---