Our monetary policy statement at a glance - December 2025
What did we decide?
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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
We kept our key interest rates unchanged
We did this because inflation is on track to settle around our 2% target.
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
The economy is doing better than expected
Many people have jobs and wages are increasing. People are spending more. Companies, too, are increasing their investments. Exports, especially chemicals, have also held up so far. Services should continue to drive the economy.
Inflation is around 2% – our target
Energy is cheaper than a year ago. Food prices are increasing, but more slowly. The prices of many services are still going up relatively fast, but prices for goods are rising much more slowly. Looking ahead, we expect inflation to remain around our target.
Banks are in good shape to cope with difficulties
Their financial positions are solid and they are making profits. But if prices in financial markets come down very suddenly, this could make life more challenging. So financial risks need to be watched closely and properly managed.
How do we see the economy developing?
We expect the economy to grow steadily in the years ahead
Projections for euro area growth in 2025 and the coming years
(projections from December 2025)
We expect inflation to settle at around our 2% target
Projections for euro area inflation in 2025 and the coming years
(projections from December 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