Our monetary policy statement at a glance - March 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 cut our key interest rates by 0.25 percentage points
We are doing this because inflation is on track to settle at around our 2% target, and 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
Uncertainty at home and abroad is a burden on the economy
Trade tensions could weigh on exports and make it more difficult for firms to plan ahead. Because of uncertainty, firms are holding back big investments and people are still saving a lot of their incomes. But, gradually, the economy should get stronger.
Many people are in jobs
Unemployment remains the lowest it has been since the start of the euro. Services, in particular, are doing well.
Inflation is heading towards our 2% target
Food prices are rising a bit faster than before. But, overall, inflation is coming down mainly because wages and prices for services are no longer going up as much.
How do we see the economy developing?
We expect the economy to slowly recover over the coming years
Projections for euro area growth in 2025 and the coming years
(projections from March 2025)
We expect inflation to settle at around our 2% target
Projections for euro area inflation in 2025 and the coming years
(projections from March 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