The ECB's key interest rate
Question
What is the European Central Bank's main policy rate right now?
Short answer
Know the current ECB rates, especially the deposit facility rate. The ECB sets three rates: the deposit facility rate (now the main steering rate, given ample excess reserves), the main refinancing operations rate and the marginal lending rate. They are set to keep euro-area inflation at over the medium term; check the latest Governing Council decision before the interview.
Adapted from Joshi, Denson & Downes, Quant Job Interview Questions and Answers, Q9.28, p.304; question and answer rewritten by SelfMadeQuant.com.
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