ECB December 2025 monetary policy decision and economic outlook

The European Central Bank (ECB) announced its monetary policy decision for December 2025, providing an update on economic and financial conditions in the euro area.

The decision reflects the latest macroeconomic projections, which include inflation outlooks, GDP growth, and risks to the economic outlook. The projections incorporate recent market developments, including interest rate expectations and exchange rate movements.

Key highlights include:

• Inflation projections for 2025 and 2026, with ongoing risks from global trade, geopolitical tensions, and energy prices.
• Growth forecasts indicating moderate expansion, with risks from external demand and financial market sentiment.
• Financial conditions, including interest rate expectations, exchange rates, and credit flows, remain supportive but are subject to volatility and geopolitical risks.
• Monetary policy stance remains data-dependent, with the ECB monitoring inflation and growth developments closely.

The ECB continues to assess the impact of recent economic developments and market conditions to determine the appropriate monetary policy stance. The next policy meeting will consider incoming data and market signals to guide future decisions.

Further details and the full economic projections are available in the official ECB report linked below.