Role of the Bank of Lithuania in implementing single monetary policy
The Eurosystem, comprised of the euro area national central banks and the European Central Bank (ECB), is responsible for the implementation of the single monetary policy within the euro area. The Bank of Lithuania has been a member of the Eurosystem since 2015, when Lithuania joined the euro area.
As a member of the Eurosystem, the Bank of Lithuania plays an important role in the formation and implementation of the single monetary policy.
In the Eurosystem, the Bank of Lithuania:
- represents Lithuania in the decision-making process and implementation of monetary policy;
- analyses and explains how the single monetary policy affects the economies of the euro area and Lithuania;
- implements the single monetary policy in Lithuania by applying the standardised monetary policy instruments of the Eurosystem to domestic credit institutions.
Decision-making process of single monetary policy in the Eurosystem
As a member of the Eurosystem, the Bank of Lithuania actively participates in the decision-making process and implementation of monetary policy. The Chair of the Board of the Bank of Lithuania is a member of the Governing Council of the ECB. The Governing Council is the main decision-making body in the Eurosystem, making all major decisions on monetary policy. The Governors of NCBs, as members of the Governing Council, form and express their views independently, in pursuit of the welfare of the euro area as a whole. Bank of Lithuania experts carry out research, provide information and insights needed to form the position by the Chair of the Board of the Bank of Lithuania.