Market developments in the first two weeks of January With a view to ensuring a smooth transition to the euro, the Governing Council took two important decisions already on 22 December 1998, in order to give guidance to the markets on the monetary conditions at the outset of Monetary Union.
First, it was decided to start the provision of liquidity via the first tender operation, which was carried out in the first week, at a fixed rate of 3%. The Governing Council also agreed that the interest rate for the marginal lending facility would be set at 4.50% and the interest rate for the deposit facility at 2%.