The European Monetary Union (EMU) monetary policy is implemented by the Eurosystem. The Eurosystem comprises the European Central Bank (ECB) and the national central banks (NCBs) of the Member States whose currency is the euro. The Croatian National Bank enters the Eurosystem on 1 January 2023.
The primary objective of the Eurosystem is the maintenance of price stability. The ECB's Governing Council considers that price stability is best maintained by aiming for 2% inflation over the medium term.
The Eurosystem monetary policy implementation is based on two principles:
- decisions are adopted by the ECB's Governing Council
- decisions are implemented by the NCBs of the Member States whose currency is the euro.
The CNB implements the Eurosystem monetary policy in the territory of the Republic of Croatia.
For more on monetary policy see ECB website