European Central Bank

On June 1, 1998, the ECB replaced the European Monetary Institute. Willem Frederik Duisenberg became its first president.⁠[2]

On January 1, 1999, the ECB became responsible for the euro area’s single monetary policy and the euro became its single currency.⁠[1]

The ECB’s primary objective is price stability. The Eurosystem defines and implements monetary policy, conducts foreign exchange operations, manages foreign reserves and promotes smooth payment systems; the ECB also has specific banking supervision and other responsibilities.⁠[3]

In an interview published October 24, Executive Board member Piero CipollonePiero CipollonePiero Cipollone is an Italian economist and member of the European Central Bank’s Executive Board.Open the full entry said a pilot involving real transactions by central bank staff was planned for 2027. A decision on issuance would follow the conclusion of European legislative negotiations.⁠[4]

The European System of Central Banks consists of the ECB and the national central banks of all EU member states. The Eurosystem consists of the ECB and the central banks of countries that use the euro, and is responsible for the euro area’s single monetary policy.⁠[5]

The Governing Council is the ECB’s main decision-making body. It consists of the six Executive Board members and the governors of euro-area national central banks, and sets monetary policy and key interest rates. The Executive Board manages day-to-day work and implements policy; supervisory matters are addressed in separate meetings.⁠[6]

The ECB’s 2025 monetary policy strategy sets a symmetric 2% inflation target over the medium term: persistent inflation below the target is as undesirable as inflation above it. The target is a policy objective, not a measure of inflation at a particular date.⁠[7]