Monetary policy glossary

Real euro EERs are nominal euro EERs deflated by a weighted average of foreign, relative to domestic, prices or costs. They are, thus, measures of price and cost competitiveness. See also effective exchange rate (EER) of the euro, nominal effective exchange rate (EER) of the euro

TFEU Protocol No 12 on the excessive deficit procedure sets explicit reference values for the general government deficit ratio (3% of GDP) and the debt ratio (60% of GDP). See also Stability and Growth Pact (SGP)

See repurchase operation

The process of borrowing money by combining the sale of an asset (usually a fixed income security) with the subsequent repurchase of that same asset for a slightly higher price (which reflects the borrowing rate).

The date on which the buyer is obliged to sell back assets to the seller in relation to a transaction under a repurchase agreement. See also repurchase agreement

A liquidity-providing reverse transaction based on a repurchase agreement.

The price at which the buyer is obliged to sell back assets to the seller in relation to a transaction under a repurchase agreement. The repurchase price equals the sum of the purchase price and the price differential corresponding to the interest on the extended liquidity over the maturity of the operation. See also repurchase agreement

An account with the national central bank on which a counterparty's reserve holdings are maintained. The counterparties' settlement accounts with the national central banks may be used as reserve accounts. See also reserve holdings

The sum of the eligible balance sheet items (in particular liabilities) that constitute the basis for calculating the reserve requirement of a credit institution. See also minimum reserves

Counterparties' holdings on their reserve accounts which serve to fulfil reserve requirements. See also minimum reserves

The ratio defined by the central bank for each category of eligible balance sheet items included in the reserve base. The ratios are used to calculate reserve requirements. See also minimum reserves

Time remaining until the maturity date of a debt instrument.

An operation whereby the central bank buys or sells assets under a repurchase agreement or conducts credit operations against collateral.