ECB’s Operational Framework Review: DFR Remains the Main Tool

13 March 2024

By Isabel Teles – FRANKFURT (Econostream) – The deposit facility rate (DFR) would remain the main tool of the European Central Bank’s monetary policy, according to a press release published Wednesday by the ECB announcing changes to its operational framework.

‘The Governing Council will continue to steer the monetary policy stance through the DFR’, the press release said. ‘Short-term money market interest rates are expected to evolve in the vicinity of the DFR with tolerance for some volatility as long as it does not blur the signal about the intended monetary policy stance.’