Our monetary policy statement at a glance - June 2026
What did we decide?
We raised our key interest rates by 0.25 percentage points
We are doing this because the war in the Middle East is driving up prices. We want to see inflation stabilise at 2% in the medium term. Our decision leaves us well positioned to cope with the uncertainty caused by the war.
What is going on in the economy?
The war in the Middle East is weighing on the economy…
Much higher energy prices are eating into people’s incomes. They worry about the future and are cautious in their spending. Businesses are also less confident and investing less.
… but the economy still grew
Companies are building up stocks in case materials and equipment take longer to deliver or cost more. They also continue to invest in digital technology. New jobs are still being created, but not as many as before. Overall, the economy is slowing down, especially services.
The war keeps pushing up inflation
Energy is much more expensive. Firms have been paying higher costs and are now starting to pass them on. This will raise prices for food, goods and services. Inflation will rise further over the summer and remain well above our 2% target into next year.
How do we see the economy developing?
We expect the economy to grow more slowly this year before recovering
Projections for euro area growth in 2026 and the coming years
(projections from June 2026)
We expect inflation to be well above our target this year before gradually coming down again
Projections for euro area inflation in 2026 and the coming years
(projections from June 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