ECB Monetary Policy Decision: February 2025
ECB Monetary Policy Decision: February 2025
The ECB lowers its three key interest rates by 25 bps, moving the deposit facility to 2.50%, the main refinancing operations rate to 2.65%, and the marginal lending facility rate to 2.90%.
| Indicator | 2025 | 2026 | 2027 |
|---|---|---|---|
| Headline Inflation (YoY%) | 2.3% (Dec: 2.1%) | 1.9% (Dec: 1.9%) | 2.0% (Dec: 2.1%) |
| Core Inflation (YoY%) | 2.2% (Dec: 2.3%) | 2.0% (Dec: 1.9%) | 1.9% (Dec: 1.9%) |
- On inflation:
| Indicator | 2025 | 2026 | 2027 |
|---|---|---|---|
| GDP Growth | 0.9% (Dec: 1.1%) | 1.2% (Dec: 1.4%) | 1.3% (Dec: 1.3%) |
- On growth:
- The ECB asserts that it is not pre-committing to a particular rate path and will continue to be data dependent.
- There is no direct mention of US policy changes, but the ECB has gone out of its way to highlight the heightened level of uncertainty that the euro area faces.