After having discussed our strategy and the rationale behind our monetary policy decisions against the background of that strategy, I should like to say a few words about the Eurosystem’s monetary policy instruments. The single monetary policy of the Eurosystem is based on an operational framework that is common for all euro area countries.
This operational framework turned out to be an effective instrument for steering money market interest rates and for limiting fluctuations in overnight rates. The Eurosystem influences money market conditions mainly through its regular open market operations. The weekly main refinancing operations provide the banking system with short-term liquidity and the interest rate on this instrument gives an indication of the Eurosystem’s monetary policy stance.