ECB's Pres Lagarde: Labour Demand Has Cooled; Household Savings Unusually Large; Govt Expenditure Should Underpin Investment

The Governing Council today decided to keep the three key ECB interest rates unchanged. Inflation remains close to the 2% medium-term target and the Governing Council’s assessment of the inflation outlook is broadly unchanged. The economy has continued to grow despite the challenging global environment. The robust labour market, solid private sector balance sheets and the Governing Council’s past interest rate cuts remain important sources of resilience. However, the outlook is still uncertain, owing particularly to ongoing global trade disputes and geopolitical tensions. The Governing Council is determined to ensure that inflation stabilises at its 2% target in the medium term. It will follow a data-dependent and meeting-by-meeting approach to determining the appropriate monetary policy stance. In particular, the Governing Council’s interest rate decisions will be based on its assessment of the inflation outlook and the risks surrounding it, in light of the incoming economic and financial data, as well as the dynamics of underlying inflation and the strength of monetary policy transmission. The Governing Council is not pre-committing to a particular rate path. *ECB LEAVES DEPOSIT FACILITY RATE AT 2.00%; EST. 2.00% *ECB NOT PRE-COMMITTING TO PARTICULAR RATE PATH *ECB: GOVERNING COUNCIL STANDS READY TO ADJUST ALL INSTRUMENTS ECB SAYS APP AND PANDEMIC EMERGENCY PURCHASE PROGRAMME (PEPP) APP AND PEPP PORTFOLIOS ARE DECLINING AT A MEASURED AND PREDICTABLE PACE, AS EUROSYSTEM NO LONGER REINVESTS PRINCIPAL PAYMENTS FROM MATURING SECURITIES

*TRUMP SAID MEETING WITH XI WAS AMAZING, OUTSTANDING *TRUMP ON CHINA TRADE DEAL: IN AGREEMENT ON MANY ELEMENTS *TRUMP REDUCED FENTANYL TARIFFS TO 10% EFFECTIVE IMMEDIATELY *TRUMP: SOYBEAN PURCHASES STARTING IMMEDIATELY *TRUMP AGREEMENT ON SOYBEANS, AG PRODUCTS TRUMP: MEETING WITH XI WAS AMAZING A LOT OF DECISIONS WERE MADE WILL BE PROVIDING CONCLUSIONS ON VERY IMPORTANT THINGS PURCHASES OF SOYBEAN WILL START IMMEDIATELY AGREED THAT XI WILL WORK VERY HARD TO STOP FENTANYL I WOULDN'T SAY EVERYTHING WAS DISCUSSED WE DID DISCUSS… TRUMP: TARIFFS ON CHINA WILL BE 47% DOWN FROM 57% GOING TO CHINA IN APRIL I'LL BE GOING TO CHINA IN APRIL XI WILL BE COMING TO US SOME TIME AFTER THAT GOING TO WORK TOGETHER WITH XI ON UKRAINE TO GET SOMETHING DONE Trump: Taiwan never mentioned in discussions with Xi

ECB President Christine Lagarde explains the Governing Council's monetary policy decisions and will answer questions from journalists at the Governing Council press conference to be held on Thursday, 30 October 2025 at 14:45 CET in Florence, Italy.