Philip R Lane: Monetary policy and the money market

Opening remarks by Mr Philip R Lane, Member of the Executive Board of the European Central Bank, at the Meeting of the Money Market Contact Group, Frankfurt am Main, 14 September 2022.

The views expressed in this speech are those of the speaker and not the view of the BIS.

It is a pleasure to open this meeting of the ECB's Money Market Contact Group (MMCG). While the money market is always central to the transmission of monetary policy, its role is especially prominent when the set of policy interest rates is the main active monetary policy instrument. After an extended period in which policy rates were stable near the lower bound and asset purchasing was the marginal monetary policy instrument, the money market is now back to centre stage in the transmission of monetary policy and the MMCG is an excellent forum to collect feedback from you, the money market practitioners. In these opening remarks, I will first explain the monetary policy decisions we took last week, before turning to the transmission of our recent interest rate moves in the money market.