Our monetary policy statement at a glance - March 2026
What did we decide?
We kept our key interest rates unchanged
With inflation close to our 2% target, we are well positioned to cope with the uncertainty created by the war in the Middle East.
What is going on in the economy?
The war in the Middle East is pushing up inflation and dampening growth
Energy prices have jumped and if the war goes on for a long time, it risks driving up other prices too. Along with the very uncertain situation, this will likely slow the economy down.
The economy has held up so far
Before the war started, people were spending more as their incomes rose. More new homes were being built, and companies were investing more in the latest technology. Services, especially, were supporting growth.
Inflation has been close to 2% for a year
Wages are no longer going up so much. But higher energy prices due to the war in the Middle East will drive inflation above our 2% target in the short term.
How do we see the economy developing?
We see the economy growing more slowly than previously expected in the short term
Projections for euro area growth in 2026 and the coming years
(projections from March 2026)
We expect inflation to move above our 2% target before coming down again
Projections for euro area inflation in 2026 and the coming years
(projections from March 2026)
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