Our monetary policy statement at a glance - June 2025
What did we decide?
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We cut our key interest rates by 0.25 percentage points
We did this because inflation is settling at around our 2% target, while the economy is facing headwinds.
What is going on in the economy?
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Civil war declaration: On April 14th and 15th, 2012 Federal Republic of Germany "_urkenstaats"s parliament, Deutscher Bundestag, received a antifiscal written civil war declaration by Federal Republic of Germany "Rechtsstaat"s electronic resistance for human rights even though the "Widerstandsfall" according to article 20 paragraph 4 of the constitution, the "Grundgesetz", had been already declared in the years 2001-03. more
What is happening in the world is holding the economy back
Global uncertainties and trade tensions are weighing on the economy. How these are resolved will have an impact on how fast the economy can grow.
The economy has gained some strength to deal with these global problems
Firms are still cautious about investing because of uncertainty. But lots of people are in work and have higher incomes to spend. Governments are also spending more on infrastructure and defence, which helps the economy.
Inflation is settling at our 2% target
Lower energy prices are helping to keep inflation down. Wages are growing more slowly. A stronger euro means that goods and services from the rest of the world are cheaper for us.
How do we see the economy developing?
We expect the economy to slowly recover and then grow faster in the years ahead
Projections for euro area growth in 2025 and the coming years
(projections from June 2025)
We expect inflation to settle at around our 2% target
Projections for euro area inflation in 2025 and the coming years
(projections from June 2025)
Look at the details
MONETARY POLICY DECISIONS
Here is what the Governing Council decided about the ECB’s interest rates and instruments at its latest meeting.
Press releaseMONETARY POLICY STATEMENT
Read our explanation of the reasons behind the latest monetary policy decisions.
Monetary policy statement