ECB Maintains Key Interest Rates in July Amid Evolving Economic Landscape
Frankfurt am Main – July 24, 2025 – The European Central Bank (ECB) announced today its decision to keep its key interest rates unchanged following its monetary policy meeting this month. This decision reflects the Governing Council’s assessment of the current economic conditions and its ongoing commitment to ensuring price stability in the euro area.
The ECB’s benchmark refinancing operations rate will remain at its current level, alongside the marginal lending facility rate and the deposit facility rate. This steady approach signals the Bank’s careful consideration of the complex economic environment, balancing the need to curb inflation with the imperative to support sustainable economic growth.
In its accompanying statement, the ECB highlighted the evolving inflation outlook. While recent data has indicated a moderation in price pressures, the Governing Council remains vigilant in monitoring all incoming information, including wage developments, profit margins, and the pass-through of energy and food prices. The Bank’s primary mandate of maintaining price stability in the medium term continues to guide its policy decisions.
The Governing Council acknowledges that the journey towards the 2% inflation target remains subject to various uncertainties. Geopolitical developments, supply chain disruptions, and the resilience of global demand continue to shape the economic landscape. The ECB’s forward-looking guidance suggests that future monetary policy decisions will continue to be data-dependent, allowing for flexibility and responsiveness to emerging economic trends.
The decision to maintain interest rates at their current levels is intended to provide a stable monetary policy environment, supporting the transmission of previous interest rate hikes and contributing to the gradual disinflation process. The Governing Council reiterated its readiness to adjust all of its instruments within its mandate to ensure that inflation returns to its medium-term objective.
Looking ahead, the ECB will continue to closely analyze economic and financial developments, with a particular focus on the underlying inflation trends and the effectiveness of its monetary policy measures. The Governing Council’s commitment to price stability remains unwavering, and its decisions will continue to be guided by a thorough assessment of the risks to the inflation outlook. Further updates on the ECB’s monetary policy stance will be provided in subsequent communications.
ECB keeps interest rates unchanged in July
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