What is the role of the European Central Bank (ECB)?

The European Central Bank (ECB) is the central bank for the eurozone, which consists of the 19 European Union countries that use the euro as their currency. The ECB’s primary role is to maintain price stability within the eurozone, which it achieves by managing inflation and setting interest rates. It also plays a crucial role in regulating the financial system, maintaining the stability of the euro, and overseeing the monetary policy of the member states. The ECB can take actions such as lowering interest rates or conducting quantitative easing to stimulate economic growth. Additionally, it works to ensure the financial system is resilient to shocks and supports the broader goals of the European Union.