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

The inflation rate in Germany is expected to be +2.3% in October 2025. It is measured as the change in the consumer price index (CPI) compared with the same month a year earlier. ...

Good morning and welcome to the third public outreach meeting hosted by the federal banking agencies related to the Economic Growth and Regulatory Paperwork Reduction Act ...