“Price pressures in the euro area have eased, bringing inflation closer to the ECB’s target. At the same time, the renewed escalation of the war in Iran and the tariff dispute are weighing on the economy. Against this backdrop, keeping monetary policy unchanged is the right decision,” said Heiner Herkenhoff, CEO of the Association of German Banks.
“Nevertheless, capital market interest rates have fallen and financing conditions have stabilised. It therefore makes sense for the ECB to wait and see how its previous monetary policy decisions take effect rather than making further adjustments straight away. At present, I see no need for any further changes.”
Today’s decision puts the ECB Governing Council’s September meeting firmly in the spotlight: “The forecasts for inflation and economic growth available by then will be a key factor in shaping the ECB’s subsequent decisions,” said Herkenhoff.
His conclusion: “The ECB should continue on its measured course. Only price stability can provide the basis for sustainable growth and reliable financing conditions in the euro area.”
Contact
Kerstin Altendorf
Press spokeswoman
