European Central Bank - eurosystem
Search Options
Home Media Explainers Research & Publications Statistics Monetary Policy The €uro Payments & Markets Careers
Sort by

Our monetary policy statement at a glance - July 2022

What did we decide?

We raised interest rates by 0.5 percentage points

This is a further step in normalising our monetary policy. More rate hikes will come. They will depend on how we see the economy and inflation developing. The rate increases will help bring inflation back to our 2% target.

We agreed on a new instrument to make sure that our policy smoothly reaches all of the euro area

It will be part of our toolkit and can be activated to fend off financial market disorder that could seriously disrupt the way our monetary policy reaches people and businesses across euro area countries.

What is going on in the economy?

Inflation will stay high in the near term

Very high energy prices are still the main reason for this. But supply bottlenecks, high demand and a lower exchange rate are also pushing up inflation. Prices are going up in many parts of the economy.

The economy is growing more slowly…

This is because of high inflation, greater uncertainty and the problems that firms are facing with getting supplies. These factors significantly cloud the outlook for our economy for this year and beyond.

… but the effects are being cushioned because people are still spending

The economy is reopening and people are travelling again. A record number of people have jobs and they can use the savings built up during the pandemic. Government policies are also helping.

Borrowing is getting more expensive for firms and households

Interest rates on loans are gradually going up, in particular for households. Banks are also more cautious when giving loans because their customers face greater risks.


Look at the details


Here is what the Governing Council decided about the ECB’s interest rates and instruments at its latest meeting.

Press release


Read our explanation of the reasons behind the latest monetary policy decisions.

Monetary policy statement
What is monetary policy?