Monetary policy objectives

The primary objective of the Eurosystem’s monetary policy is to maintain price stability. According to the ECB’s Governing Council, the quantitative definition of price stability is “the annual growth rate of the harmonized index of consumer prices (HICP) in the euro area of ​​2% over the medium term.”

In addition to keeping inflation under control, monetary policy in the Eurosystem also pursues secondary objectives, including achieving a high level of employment and sustainable non-inflationary economic growth. During the review of the monetary policy strategy in July 2021, the Governing Council recognized the crucial impact of climate change on price stability and in this context committed itself to implementing an ambitious climate action plan.