Our monetary policy statement at a glance - January 2025
What did we decide?
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We cut our key interest rates by 0.25 percentage points
We are doing this because inflation is developing broadly as we expected and is on track to settle at 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 weak
Manufacturers are producing fewer goods. And there are risks, like greater barriers to trade, that make the outlook more uncertain. Services are doing better. Over time, the economy should grow more strongly again.
People are still not spending yet
Many people have more money in their pockets because their pay has gone up. But they are not yet confident enough about the future and are cautious about their spending.
The job market remains strong
Unemployment is around the lowest it has been since the start of the euro, although firms are advertising fewer job vacancies.
Inflation is, overall, on its way down
Prices have gone up a bit faster over the past few months, including for energy. But in the course of the year, inflation is expected to settle around our 2% target.
More people want to take out loans to buy a house
With interest rates coming down, mortgages have become cheaper. But banks are less ready to give loans to firms because they are worried about the outlook for the economy.
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