The European Central Bank has maintained the interest rates, as it estimates that inflation is currently shaping around its medium -term target of 2%. The ECB maintains its inflation estimates, but it revises them up to 1.2% in 2025 and down 1% for 2026.

The three main interest rates of the ECB, namely the interest rates of facilitating acceptance of deposits, main refinancing and marginal funding facilitation remain at 2.00%, 2.15% and 2.40% respectively.

The estimates

ECB experts present, in their new projections, a picture of inflation similar to the one predicted in June. They expect that general inflation will be on average at 2.1% in 2025, 1.7% in 2026 and 1.9% in 2027. In terms of inflation without energy and nutrition, they expect to be averaged at 2.4% in 2025, 1.9% in 2026 and 1.8% in 2027.

The economy is expected, according to projections, that it will grow at a rate of 1.2% in 2025, which has been revised up to 0.9% expected in June. The growth rate in 2026 is now at a slightly lower level, at 1.0%, while the view for 2027 remains unchanged at 1.3%.

The ECB’s Board of Directors is determined to ensure that inflation is stabilized in the 2% goal in the medium term. It will follow an approach based on the available data and will make decisions from a meeting at a meeting to determine the appropriate direction of monetary policy. Specifically, the decisions of the Board of Directors on interest rates will be based on its evaluation of the prospects of inflation and the dangers that surround them, in the light of incoming financial and financial data, as well as the dynamics of underlying inflation and the intensity with which monetary policy is transmitted. The Board of Directors is not committed in advance for a specific course of interest rates.

Purchase Purchase (APP) and Extraordinary Purchase Purchase Purchase Program (PEPP)

The PEPP and PEPP portfolios are reduced at a measured and predictable rate, as the Eurosystem no longer reinserts the amounts of capital from the payment of securities at the end.

Finally, as noted in the ECB’s announcement, the Board of Directors is ready to adapt all the means available within the limits of the order entrusted to it, in order to ensure that inflation will stabilize in the 2% in the medium term and to preserve the smooth functioning of the transmission. In addition, the Transmission Protection Instrument (TPI) means is available to offset unwanted, naughty market developments that poses a serious threat to transmit monetary policy in all euro zone countries, thereby allowing the Board of Directors to fulfill its efficiency.