Decision (EU) 2023/[XX] of the European Central Bank of 5 April 2023 amending Decision (EU) 2019/1743 on the remuneration of holdings of excess reserves and of certain deposits (ECB/2023/9)

The Governing Council of the ECB has adopted a Decision amending Decision (EU) 2019/1743 on the remuneration of holdings of excess reserves and of certain deposits.
The Decision concerns the temporary framework that was implemented in September 2022 by Decision (EU) 2022/1521, setting the remuneration of deposits at the deposit facility rate or the euro short-term rate (€STR), whichever was lower, and which will not be in force after 30 April 2023.
Indeed, ECB has now decided that, from 1 May 2023, the remuneration of deposits will be set at the €STR minus 20 basis points. This rate is aligned with the remuneration ceiling applicable to government deposits held with national central banks of Member States whose currency is the euro, as specified in Guideline (EU) 2019/671.
The Decision also specifies that deposits held in advance of the date on which a payment must be made in accordance with the legal or contractual rules applicable to the relevant facility shall be remunerated during this advance period at zero per cent or the €STR, whichever is higher.
The Decision is aimed at ensuring that the remuneration of deposits is aligned with the current market conditions and that the ECB’s monetary policy stance continues to be transmitted effectively to the economy.