Euro area money markets undergoing huge changes

Regulation, risk awareness following the financial crisis, and an accommodative monetary policy have in recent years brought changes to the euro area money markets. Trading has changed from uncollateralised to collateralised lending, and the differences in interest rates between different instruments have grown. Changes in monetary policy interest rates affect market interest rates via the money markets, and therefore the central banks in the Eurosystem closely follow the developments of the money markets.