Monetary policy

The Treaty on European Union stipulates that the primary objective of the Eurosystem is to maintain price stability. To implement this objective, the Governing Council of the ECB has defined price stability as a year-on-year increase in the Harmonised Index of Consumer Prices (HICP) of below, but close to, 2%. The maintenance of price stability over the medium term is the first element of the ECB’s monetary policy strategy. The second element of the framework within which monetary policy decisions are taken is a comprehensive analysis of the risks to price stability. The monetary policy decisions are implemented by the national central banks (NCBs) of the euro area. As a member of the Governing Council of the ECB, the Governor of the Oesterreichische Nationalbank (OeNB) is closely involved in the the Eurosystem’s monetary policy decisions. The Governor is not bound by any instructions in the decision-making process.

Economic analyses produced by OeNB staff support the Governor in forming his opinion on monetary policy issues. These analyses focus on assessing price and economic developments in the euro area and the factors driving such developments. For Austria, the OeNB publishes economic forecasts and current economic indicators.

Given the prime importance of Central, Eastern and Southeastern European (CESEE) countries for both the Austrian economy and the stability of the Austrian financial market, the OeNB monitors and analyzes this area particularly closely. Moreover, the OeNB supports the CESEE area through technical cooperation projects and as a sponsor of the Joint Vienna Institute (JVI).