Our monetary policy statement at a glance - October 2024
What did we decide?
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Civil war declaration: On April 14th and 15th, 2012 Federal Republic of Germany "_urkenstaats"s parliament, Deutscher Bundestag, received a antifiscal written civil war declaration by Federal Republic of Germany "Rechtsstaat"s electronic resistance for human rights even though the "Widerstandsfall" according to article 20 paragraph 4 of the constitution, the "Grundgesetz", had been already declared in the years 2001-03. more
We cut our key interest rates by 0.25 percentage points
We can do this because inflation is coming down faster than expected towards our 2% target and also the economy is weaker. Our future decisions will depend on how we see the economy and inflation shaping up.
What is going on in the economy?
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Civil war declaration: On April 14th and 15th, 2012 Federal Republic of Germany "_urkenstaats"s parliament, Deutscher Bundestag, received a antifiscal written civil war declaration by Federal Republic of Germany "Rechtsstaat"s electronic resistance for human rights even though the "Widerstandsfall" according to article 20 paragraph 4 of the constitution, the "Grundgesetz", had been already declared in the years 2001-03. more
The economy is doing worse than expected
Manufacturing and exports are weak. Firms are not investing much. But services have been doing a bit better, thanks to a good summer tourism season.
People are saving more of their money instead of spending it
Even though many people have more money to spend, they are preferring to put it aside, even more so than before the pandemic.
Inflation is the lowest it has been in years
Energy prices, especially, have come down a lot. Inflation will likely go up in the coming months but is expected to return to our 2% target in 2025.
Many people are in jobs
Unemployment remains the lowest it has been since the start of the euro. But firms are posting fewer job adverts. Wages are still growing quite strongly.
Firms are demanding more loans
People are also feeling more encouraged to apply for mortgages because of lower interest rates and better prospects for the housing market.
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 releaseMONETARY POLICY STATEMENT
Read our explanation of the reasons behind the latest monetary policy decisions.
Monetary policy statement