Global interest rates and domestic monetary policy A related question is: does the fact that we are concerned about the impact of Fed normalisation mean that we simply follow global interest rates in conducting monetary policy? The simple answer is: no.
However, monetary policy does not focus on individual prices, but rather on the overall price level. On average, prices in the euro area fell by 0.6% in January, and inflation rates will remain negative in the coming months. In Germany, prices fell by 0.5%, year on year, in January.