ECB remains stable: economy grows more than expected!

ECB remains stable: economy grows more than expected!

In a significant decision, the European Central Bank (ECB) On September 11, 2025, the key interest rates in the euro area kept stable. The deposit rate remains 2.0 percent and the main refinancing interest rate is 2.15 percent. This is done in an uncertain economic environment, which is influenced by the government crisis in France and persistent US tariffs. ECB President Christine Lagarde had already emphasized in July that you do not want to take a premature steps.

The decision on interest policy is not only an important step for the markets, but also reflects the ECB's endeavor to ensure economic stability. After eight interest reductions in the past twelve months, however, the economy in the euro area is more robust than expected. The growth forecast for 2025 has therefore been raised from 0.9 percent to 1.2 percent, whereas the forecast for 2026 was reduced to 1.0 percent.

Economic prospects despite challenges

The positive prospects are also supported by planned European defense spending that are intended to boost the market. The ECB expects inflation of 2.1 percent for 2025, which is slightly above the target value of 2.0 percent. For the following year, a rate of inflation of 1.7 percent and 1.9 percent is expected for 2027. Expert If they are careful, but the ECB remains vigilant with external shocks and global market conditions.

ECB council meetings are crucial to react appropriately to current economic developments. The latest decisions on key interest rates or reductions have direct effects on the credit costs, which affects both companies and private households. A low interest rate can promote investments, while high interest rates are used to combat inflation.

Future of monetary policy

With a view of future interest policy, the ECB remains flexible. It could react to changes in inflation and economic growth, which indicates a possibility that further interest rate reductions are not excluded if the economic framework is not stabilized. The next interest decision will be expected in the coming year, in which new macroeconomic projections are also presented.

The ECB Join a role here that requires both price stability and the promotion of growth. In view of the political unrest within the euro zone, monetary policy could have a decisive impact on economic stability and progress in the region in the coming months.