Our monetary policy statement at a glance - September 2026
What did we decide?
We raised our key interest rates by 0.25 percentage points
We are doing this because the Middle East conflict keeps driving up prices. Inflation is likely to be above our 2% target for quite a while.
What is going on in the economy?
The economy is holding up better than expected
Manufacturing is doing better, partly because governments are spending more on defence and infrastructure. Firms are investing in AI. Exports have picked up. But the outlook for the future remains highly uncertain.
Consumers are becoming more confident
They are spending more, especially on services. Many people are in jobs. Overall, the economy should continue to improve.
Expensive energy is pushing up prices
This will keep inflation well above our 2% target over the coming year or so. Only towards the end of 2027 is inflation likely to come back down towards 2%.
How do we see the economy developing?
We expect the economy to recover and grow faster in the coming years
Projections for euro area growth in 2026 and the coming years
(projections from September 2026)
We expect inflation to be well above our target for quite a while
Projections for euro area inflation in 2026 and the coming years
(projections from September 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