This means that they cannot be instructed to provide liquidity – the provision of liquidity must be their free and independent decision. This applies regardless of whether the central bank provides liquidity in order to pursue the objectives assigned to it by primary law or under domestic legislation to fulfil its lender of last resort function.
Moving on to the objectives, liquidity can be provided to serve the primary objective of maintaining price stability. This is without prejudice to supporting national central bank objectives or to ensuring financial stability to which the European System of Central Banks (or the ESCB) only contributes. But it can also be provided as part of other economic or fiscal policies.