Monetary policy

The Bank of Greece, as a member of the Eurosystem, participates in the formulation of monetary policy in the euro area and is responsible  for its implementation in Greece.

The primary objective of monetary policy in the euro area is to ensure price stability. In other words, the key task of the Bank of Greece, within the Eurosystem, is to preserve the purchasing power of the euro. This task reflects the generally accepted view that, by keeping  prices stable, monetary policy contributes significantly to sustainable growth, economic welfare and job creation.

Monetary policy refers to decisions taken by central banks and influencing  the cost and availability of money in an economy. These decisions refer to the interest rates and the terms and conditions under which commercial banks borrow from central banks. These in turn affect  the interest rates at which individuals and enterprises borrow from commercial banks.

Monetary policy in the euro area is implemented in a decentralised manner. The ECB's Governing Council, a member of which is the Governor of the Bank of Greece, formulates monetary policy and takes the relevant decisions, while national central banks are responsible  for their implementation in  the domestic context.

The Bank of Greece, as part of the Eurosystem:

  • is responsible for the implementation of the Eurosystem's monetary policy in Greece and, in this context, provides liquidity to and accepts deposits from domestic credit institutions;
  • informs the Greek public about the monetary policy pursued in the euro area through its regular publications (Annual Report).
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