Additional reductions by 50 basis points (to 3.25%) on 6 November and by 75 basis points (to 2.5%) on 4 December were decided against the background of a further alleviation of risks to price stability at policy-relevant horizons at a time of a rapid and significant deterioration in the outlook for economic growth in the euro area, and a further alleviation of upside risks to price stability at the policy-relevant medium-term horizon.
It is essential that the financial institutions that participate in and rely on CCPs are able to conduct effective due diligence to understand the risks they face as members and take appropriate steps to mitigate those risks. Third, owing to mutualisation, losses and liquidity shortfalls in the event of a member default may spread to other participants.