Abstract  3

Non-technical summary  4

1  Introduction to the Eurosystem's MPIs in 2024 and 2025  6

2  The 2024 operational framework review  11

2.1  The review of the Eurosystem operational framework  11

2.2  Principles guiding the ECB operational framework  12

2.3  Design features  13

Box A  First years of implementation of the OFR  14

3  ECB policy rates: gradual easing of interest rates and impact on money markets  19

3.1  Easing of key interest rates amid a reduction in excess liquidity  19

3.1.1  Pass-through to unsecured money market rates  19

3.1.2  Pass-through to secured money market rates  20

4  Purchase programmes and credit operations: reduction in excess liquidity and smooth market absorption  23

4.1  Purchase programmes: decline at a measured pace  23

4.1.1  Reduction in carbon intensity  26

4.2  Credit operations: limited demand for central bank liquidity  27

4.2.1  Limited recourse to SROs  27

4.2.2  Limited recourse to US dollar liquidity operations  30

5  Collateral framework  31

5.1  Enhancing the harmonisation, flexibility and risk efficiency of the collateral framework  31

5.2  Climate change considerations in the collateral framework  33

5.3  Eligibility and mobilisation of collateral  35

Box B  Eurosystem Collateral Management System  37

6  Eurosystem counterparty framework and MRRs  40

6.1  Eligibility criteria and discretionary measures  40

6.2  Counterparty-related developments  41

6.3  MRRs  42

Box C  Access to Eurosystem MPOs for eligible counterparties subject to an open bank resolution scheme  47

References  49