ECB Monetary Policy

The European Central Bank (ECB) manages monetary policy for the Eurozone, influencing economic stability and growth. It does this primarily by setting interest rates, which affect borrowing and spending. Lower interest rates encourage people and businesses to borrow more, boosting economic activity, while higher rates can help control inflation by making borrowing more expensive. The ECB also uses other tools, like quantitative easing, to manage the money supply. Its overall goal is to maintain price stability and support the economy, ensuring that prices do not rise too quickly and that money retains its value.