This also ensures that the liquidity provision aimed at promoting the smooth functioning and resilience of money markets is also fully in line with the primary objective of price stability. Particularly after the onset of financial tensions in August 2007, the principle, that the steering of liquidity is subservient to the monetary policy stance and does not affect it, appeared of the essence.
In this period of acute turbulences, the ECB has succeeded in containing deviations of very short-term interest rates from the official interest rate set by the Governing Council. As a result, the ECB has ensured a continued effective implementation of monetary policy in line with the stance, thereby also contributing to safeguarding overall financial stability. Since the last Hearing in December, tensions have continued.