Description
The Eurozone's Main Refinancing Operations Rate (MRO) is set and published by the European Central Bank (ECB). The MRO is the ECB's primary tool for providing short-term liquidity to commercial banks through weekly auctions. When the economy overheats or inflation rises, the ECB typically raises the MRO rate to curb demand; conversely, it lowers the rate during slowdowns.
Additionally, the ECB sets the Marginal Lending Facility Rate (MLF) and the Deposit Facility Rate (DF). The MLF is higher than the MRO, providing emergency funds to banks, while the DF is lower, allowing banks to deposit excess funds overnight.
The ECB’s Governing Council meets eight times per year.