Central banking in the 21st century With changes in the concept of money and the use of coins and bank notes, and with the introduction of electronic money, satellite communication and financial globalisation, central banks and the modus operandi of monetary policy will also have to change to adapt to the new environment.
The low interest rate environment in recent years has meant a considerable reduction in the interest payments made by households. Looking ahead, due to higher interest rates, gross interest payments in the euro area can be expected to rise by only a limited extent, in view of relatively contained household debt levels and the extent of fixed-rate contracts.