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Our monetary policy statement at a glance - September 2023

What did we decide?

We raised our key interest rates by a further 0.25 percentage points

This will help to bring down inflation further. Our past interest rate hikes are already having an effect on the economy. Our future decisions will depend on how we see the economy and inflation developing.

What is going on in the economy?

The economy will stay weak for a while

Businesses are investing less and their exports are down. Manufacturing is struggling, and services are now starting to falter. But over time, lower inflation and higher incomes should help the economy recover.

The jobs market is still strong

Although the economy is cooling, unemployment remains at a record low. Many people’s wages are going up. But now fewer jobs are being created, even in services.

Inflation is falling but is still too high

Food is still getting more expensive, even though prices are not rising as much as before. Prices for services, especially holidays and travel, are keeping inflation high. In the coming months, inflation should drop further.

People and businesses are taking out fewer loans

As loans become more expensive, people and firms are borrowing less.

How do we see the economy developing?

We expect the economy to be weak for now but to recover slowly in the coming years.

Projections for euro area economic growth in 2023 and the coming years
(projections from September 2023)

We see inflation falling from high levels. Over time we expect it to move back towards our 2% target.

Projections for euro area inflation in 2023 and the coming years
(projections from September 2023)

SEE ALSO

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 release

MONETARY POLICY STATEMENT

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

Monetary policy statement
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What is monetary policy?