The European Central Bank published an Economic Bulletin box on Eurosystem liquidity conditions and monetary policy operations covering the first and second reserve maintenance periods of 2026, from 11 February to 5 May 2026. Average excess liquidity in the euro area banking system continued to decline, falling by EUR 112 billion to EUR 2,358 billion. The main driver was a EUR 145 billion drop in liquidity provided through monetary policy instruments to EUR 3,632 billion, almost entirely because outright monetary policy portfolio holdings under the asset purchase programme and the pandemic emergency purchase programme declined by EUR 144 billion as redemptions continued without reinvestments. Average daily liquidity needs also fell, decreasing by EUR 33 billion to EUR 1,273 billion. The decline in liquidity needs reflected a EUR 35 billion fall in net autonomous factors, while minimum reserve requirements rose by EUR 3 billion to EUR 172 billion. Liquidity-providing autonomous factors increased by EUR 35 billion, mainly because euro-denominated net assets rose by EUR 28 billion and net foreign assets by EUR 8 billion, while liquidity-absorbing autonomous factors were broadly unchanged. Liquidity provided through credit operations stayed stable at EUR 24 billion, with average main refinancing operations at EUR 13 billion and three-month longer-term refinancing operations at EUR 11 billion. The Governing Council kept the deposit facility rate, main refinancing operations rate and marginal lending facility rate unchanged at 2.00%, 2.15% and 2.40% respectively. Over the period, the euro short-term rate averaged 6.8 basis points below the deposit facility rate, while the RepoFunds Rate Euro averaged 0.7 basis points above it.
European Central Bank2026-06-25
European Central Bank reports euro area excess liquidity fell by EUR 112 billion as APP and PEPP portfolio run-off reduced liquidity provision
The European Central Bank reported that excess liquidity in the euro area banking system fell by EUR 112 billion to EUR 2,358 billion between 11 February and 5 May 2026. The drop was driven mainly by a EUR 144 billion reduction in APP and PEPP holdings as redemptions continued without reinvestments. Key ECB policy rates were unchanged, while credit operations remained stable at EUR 24 billion.