ECB monetary policy - part.1

Over the past two weeks, the European Central Bank (ECB) has maintained its accommodative monetary policy stance, keeping the three key interest rates unchanged at 2.00% for the deposit facility, 2.15% for the main refinancing operations, and 2.40% for the marginal lending facility. This decision, announced on July 24, 2025, reflects the ECB's commitment to ensuring that inflation stabilizes at its 2% medium-term target. The current inflation rate is in line with this target, and domestic price pressures have continued to ease, with wages growing more slowly. The ECB's approach remains data-dependent, with decisions based on assessments of the inflation outlook, underlying inflation dynamics, and the strength of monetary policy transmission .

In addition to its interest rate decisions, the ECB has been actively engaged in restructuring its monetary policy framework. On June 25, 2025, the Governing Council approved the results of its 2025 monetary policy strategy assessment. This assessment aimed to ensure that the ECB's monetary policy strategy remains fit for purpose in a changing environment. The updated strategy emphasizes the importance of flexibility and responsiveness to changes in the inflation environment, incorporating a more comprehensive approach to assessing risks and uncertainties. The ECB plans to periodically assess the appropriateness of its monetary policy strategy, with the next assessment expected in 2030 .

Furthermore, the ECB has implemented operational changes to enhance the effectiveness of its monetary policy implementation. Notably, on July 17, 2025, the Governing Council decided to postpone the implementation of the requirement to comply with the EU's Corporate Sustainability Reporting Directive (CSRD) as an eligibility criterion in the Eurosystem collateral framework. This decision was made due to the incomplete transposition of the CSRD by the initial deadline and ongoing discussions around its review. Additionally, the ECB approved changes to the process for preparing and publishing the autonomous factor forecast, aiming to enhance operational efficiency by discarding obsolete procedures .