Monetary Policy

The latest meeting of the Governing Council of the ECB once again took place against a backdrop of conflict in the Middle East. This is still ongoing, notwithstanding a brief interlude of reduced intensity, and its outcome remains uncertain. For now the impact is materially evident in selected economic indicators, most notably elevated inflation, while economic growth in the euro area remains stable in general. The risks remain elevated going forward. Under these circumstances the Governing Council of the ECB decided to leave interest rates unchanged at the latest meeting, having raised them by 25 basis points at the previous meeting in June.