ECB rates: stabilization confirmed

On Thursday, July 24, 2025, the European Central Bank (ECB) keeps its three key rates unchanged. Inflation is now at the level of the 2 % medium-term targetand the European economy is demonstrating a certain resilience despite international uncertainties.

🔸 Inflation under control

L'annual inflation stood at 2.0 1TP4Q in Juneslightly above May's level (1.9 %). The wage growth slowsand short-term inflation expectations are falling. Most core inflation indicators point to an upward trend. lasting stabilization around 2 %.

📈 Moderate but sustained growth

L'economic activity was more buoyant than expected in the first quarter, driven by private consumption, investment and the anticipation of tariffs. The labor market remains solid, with unemployment rate at 6.3 %close to its all-time low. The outlook remains fragile, however, in view of the trade tensionsof euro appreciation and geopolitical uncertainties.

🏦 Credit: gradual recovery

Visit cost of new business loans down slightly3.7 % in May, and overall financing conditions are easing. On the household side average mortgage rate stable at 3.3 1TP4Qwith a slight acceleration in demand.

📊 Cautious about the future direction of interest rates

The ECB adopts a case-by-case decision-making, meeting after meetingbased on available economic and financial data. No predefined rate trajectorybut the institution is ready to adjust its instruments to guarantee sustainable stabilization of inflation.

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