The European Central Bank (ECB) decided to keep its key interest rates unchanged at its latest monetary policy meeting, as announced in a statement by President Christine Lagarde and Vice-President Boris Vujčić.
The decision reflects the bank's assessment that inflation is on a path toward its 2% target, supported by a resilient euro area economy. The ECB reiterated that future policy moves will remain data-dependent, with each meeting assessed based on the latest economic and financial data.
The statement highlighted that domestic price pressures remain elevated, but the overall disinflation process is proceeding. The ECB also noted that the transmission of its past rate hikes is still working through the economy, affecting credit conditions and demand.
The Governing Council stands ready to adjust all of its instruments within its mandate to ensure inflation returns to target in a timely manner. The next monetary policy meeting is scheduled for September, where new staff projections will inform the discussion.
Source: European Central Bank
