The European Central Bank (ECB) has revised its growth forecast for the Eurozone’s economy this year, now predicting a 1.2% increase compared to the 0.9% anticipated in June, while lowering expectations for the following year.
For 2026, the ECB’s expectation decreased by 0.1 percentage points from June, setting it at 1.0%, while for 2027, it remains at 1.3%, as stated in a communiqué released after the Governing Council meeting in Frankfurt, Germany.
In terms of inflation, projections remain similar to those in June, forecasting a rise of 2.1% this year, 1.7% next year, and 1.9% in 2027.
For underlying inflation, excluding energy and unprocessed food products, expectations are that it will average 2.4% in 2025, 1.9% in 2026, and 1.8% in 2027.
“The ECB’s Governing Council is determined to ensure that inflation stabilizes at the 2% target over the medium term,” the document states.
During the meeting, the Governing Council decided to keep the key interest rates for the Eurozone unchanged, aligning with analysts’ forecasts that they would remain stable for now.
The deposit facility rate stays at 2.00%, the main refinancing operations rate at 2.15%, and the marginal lending facility rate at 2.40%.
