Our monetary policy statement at a glance - July 2023
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 raised our key interest rates by a further 0.25 percentage points
Our past interest rate hikes are already having an effect on the economy. Our future decisions will depend on how we see the economy and inflation developing.
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 weak now but should recover over time
Right now, consumers and businesses are spending less. Over time, lower inflation, higher incomes and better supply conditions should support the recovery.
The economy shows a mixed picture
Services, especially tourism, are still doing well, though this may not last. Manufacturing is having a tough time, partly because demand from the rest of the world is weak.
Lots of people have jobs
The strong job market is keeping unemployment at its lowest level since the start of the euro. Many new jobs have been created, especially in services. But this strong demand for more workers will gradually cool down.
Inflation has come down further but is still too high
Energy prices have dropped further. But food prices are still going up, though not as much as before. Holidays and travel, especially, are more expensive. Profit margins and higher wages are driving inflation.
Higher interest rates mean that fewer businesses want loans
Demand from businesses to borrow money for investments and other expenses is dropping sharply. Fewer people want mortgages, given that they are also more expensive.
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