In Ireland, interest rate movements are influenced by decisions made by the ECB. Deciding whether to increase or decrease interest rates is a key monetary policy tool used by central banks. It is used to influence economic activity and protect the health of the European banking system. These tools can be used to try and control inflation in the Eurozone, with a 2% max target set annually. By increasing and decreasing these interest rates the ECB can influence both the amount and overall cost of loans that people and companies can get.