The European Central Bank has kept its key interest rates unchanged, reaffirming its commitment to a 2% inflation target and outlining economic and inflation projections through 2028.
Christine Lagarde, President of the ECB, and Luis de Guindos, Vice-President, announced that the Governing Council decided to keep the three key ECB interest rates unchanged.
The ECB’s updated assessment confirms that inflation is expected to stabilize at around 2% in the medium term. New Eurosystem staff projections show average inflation of 2.1% in 2025, 1.9% in 2026, 1.8% in 2027, and 2.0% in 2028. Excluding energy and food, inflation is projected at 2.4% in 2025, 2.2% in 2026, 1.9% in 2027, and 2.0% in 2028.
Economic growth is forecasted to be stronger than previously expected, with growth rates of 1.4% in 2025, 1.2% in 2026, 1.4% in 2027, and 1.4% in 2028. The economy has shown resilience, with a 0.3% growth in the third quarter driven by consumption and investment.
The ECB emphasizes a data-dependent approach to monetary policy, with interest rate decisions based on inflation outlook and economic data. The Governing Council will adjust instruments as needed to ensure inflation stabilizes at the 2% target.
Additional details on economic activity, inflation, risk assessments, and financial conditions are provided in the full press release available on the ECB website.
