Cian O'Callaghan (Dublin Bay North, Social Democrats)
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269. To ask the Minister for Finance to estimate the impact on, or cost to, the Central Bank of Ireland resulting from the Governing Council of the European Central Bank's decision to change the rate that central banks are paid for intra-eurosystem balances; and if he will make a statement on the matter. [31997/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Central Bank of Ireland has provided me with the following information on the matter.

In March 2024, the Governing Council of the ECB decided to introduce changes in the operational framework for implementing monetary policy. The outcome of the operational framework review confirmed that the Eurosystem’s monetary policy stance will continue to be steered via the Deposit Facility Rate (DFR). Therefore, the formalisation of the role of the DFR as the policy rate used to steer the stance warranted that this also be reflected in the reference rate for monetary income sharing. As part of this change, it was decided that intra-Eurosystem balances should be remunerated by the DFR. Previously the main refinancing operations rate (MROR) had been used to remunerate intra-Eurosystem balances.

The change from MROR to DFR applying to intra-Eurosystem balances began only on 1 January 2025 and is expected to reduce NCBs’ income. At this point the 2025 figures are unaudited. Following year-end the Central Bank will publish audited accounts incorporating the effects of this change.