Monetary policy decisions

12 December 2024

The Governing Council today decided to lower the three key ECB interest rates by 25 basis points. In particular, the decision to lower the deposit facility rate – the rate through which the Governing Council steers the monetary policy stance – is based on its updated assessment of the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission.

A Pragmatic Approach: Better Safe than Sorry

21 October 2024

October was insurance cut and confidence boost, not a declaration of victory. I’m increasingly confident that the disinflation path is on solid footing. But the doubting Thomas in me still needs to see further proof of a sustainable return to target. Our decision to lower rates in October leaves the December meeting wide open. All options remain on the table.

Governor’s comment

Monetary policy decisions

17 October 2024

The Governing Council today decided to lower the three key ECB interest rates by 25 basis points. In particular, the decision to lower the deposit facility rate – the rate through which the Governing Council steers the monetary policy stance – is based on its updated assessment of the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission. The incoming information on inflation shows that the disinflationary process is well on track. The inflation outlook is also affected by recent downside surprises in indicators of economic activity. Meanwhile, financing conditions remain restrictive.

Monetary policy decisions