Our monetary policy statement at a glance - July 2024
What did we decide?
We kept our key interest rates unchanged
Our rates are still high, helping push down inflation. This is still needed because inflation is likely to stay above our 2% target well into next year.
What is going on in the economy?
The economy is slowly recovering
Services are driving growth in the economy. People have more to spend because inflation is coming down and wages are going up.
Manufacturing is not doing well
Firms are not increasing their production, and their exports are also not growing. But as the world economy recovers, things should improve.
Inflation is coming down but it will be a bumpy ride
Prices for goods and food are no longer going up as strongly. We expect inflation to return to our 2% target over the second half of next year, although there might be a few ups and downs before we get there.
Wages are still rising fast
Workers are seeking to make up for past price rises. More jobs are still being created, especially in services. Firms are making less profit, partly because they are not passing their higher labour costs on to customers in the form of higher prices.
People are asking to take out mortgages again
High interest rates mean loans are still relatively expensive. But it has become a bit easier to get a mortgage. Now, for the first time in two years, more people are applying for loans to buy houses.
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