Our monetary policy statement at a glance - July 2026
What did we decide?
We kept our key interest rates at their current levels
We are well positioned to cope with the uncertainty created by the conflict in the Middle East.
What is going on in the economy?
The conflict in the Middle East continues to create a lot of uncertainty
High energy prices are also putting the brakes on how fast the economy grows. Firms are cautious and building up stocks.
The economy has weathered the difficulties so far
Many people are in jobs and have money to spend. Businesses keep investing in digital technologies and AI. Governments are spending on defence and infrastructure.
Inflation has come down a little
Prices for energy, food and services are going up more slowly than before. Wages are rising moderately. But the full effects of the sharp rises in energy prices have yet to play out.
Higher energy costs are pushing up other prices
Many inputs that firms need for their business are getting more expensive. Companies expect to put up prices for their goods and services.
People are more cautious about taking out mortgages
Banks are also more careful about offering credit.
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