The European Central Bank (ECB) once again decided that these three ECB-rated interest rates will remain at 2 percent for the deposit facility, at 2.15 percent for the main refinancing facility, and at 2.40 percent for the marginal lending facility. Inflation currently stands around the 2 percent medium-term target, with forecasts being largely aligned with the previous estimates. In the present year the expected inflation rate is expected to be 2.1%, and in 2026 it will be 1.7%, in 2027 it will slightly rise up to 1.9%. Not including food and energy, the inflation rate expected in 2025 is 2.4%, which will decline to 1.8% in 2027. The growth outlook for this year is at 1.2 percent, somewhat enhanced from the previous estimate, in the next year, growth will stabilize at 1.0 percent before increasing to 1.3 percent in 2027.

The ECB reiterated its dedication to keeping inflation on its medium-term path at 2% and opted for data and risk dependence rather than an explicit rate path. The asset purchase programs (APP and PEPP) are continuing to decline as reinvestment was discontinued. The performance of the economy in the first half of 2025 was moderate, with growth underpinned by domestic demand and supply and sustained consumer welfare (with unemployment at 6.2%).Although the economy faces tariff imposition to stave off internal deflation as global economic concerns, international competitions, and increasing euro value alllead to unwinding activity to decline.

Macroeconomic and structural adjustments are important to retain and enhance competitiveness, the demand for the supply of services comes up on infrastructure expenditure, defense, and growing digitalization. The general risk level stays steady and equitable but is affected by other worldwide trade disputes and geopolitical conflicts towards climate change conditions; this could affect the growth and inflation trends. Financial stability continues to be helpful towards growth. The interest rates by commercial entities are lower, and loans against property are stable, which helps the expansion of credit. In that regard, the ECB confirmed its commitment to the proactive approach of using its tools to maintain stability and ground monetary policy within its borders to ensure proper transmission.