European Central Bank (ECB)

The European Central Bank (ECB) is the central bank responsible for managing monetary policy for the Eurozone, which consists of the 20 European Union countries that use the euro as their currency. The ECB’s primary objective is to maintain price stability by controlling inflation through interest rate adjustments, open market operations, and other monetary policy tools. The ECB also oversees the financial stability of the Eurozone’s banking system, conducting banking supervision and ensuring the smooth functioning of payment systems. The ECB plays a crucial role in the Eurozone’s economic stability, influencing exchange rates, lending conditions, and overall economic growth.

Example

The ECB may lower interest rates to stimulate economic growth or raise them to control inflation within the Eurozone.