Our monetary policy statement at a glance - June 2023
What did we decide?
We raised interest rates by 0.25 percentage points
Our future decisions will depend on how we see inflation developing and how well our past rate hikes tame inflation.
What is going on in the economy?
Inflation has been coming down but is still too high
Prices are no longer rising as much for many goods and services, though food is still getting a lot more expensive every month. Higher wages are increasingly driving up inflation.
The economy is weak now, but should recover later in the year
Lower inflation and fewer supply problems will help. Services are doing well, but manufacturing is weak, partly because borrowing is more expensive.
Almost a million new jobs were created in the first three months of the year
The strong jobs market is keeping unemployment at its lowest level since the start of the euro. Wages are going up for many workers.
Getting a loan is the most expensive it has been in more than a decade
As interest rates are going up, fewer firms and households are taking out loans. We are closely watching how higher interest rates affect the economy.
How do we see the economy developing?
We expect the economy to recover slowly in the coming years.
Projections for euro area economic growth in 2023 and the coming years
(projections from June 2023)
Inflation is still very high but, over time, we expect it to come much closer to our 2% target.
Projections for euro area inflation in 2023 and the coming years
(projections from June 2023)
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