Study - The ECB’s monetary policy stance in an uncertain environment - 19-06-2025
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In this paper, we review the recent economic outlook, policy decisions and communication of the ECB against the backdrop of growing uncertainty. First, inflation heterogeneity has receded with inflation, thus contributing to facilitating the design of monetarStudy - The ECB’s monetary policy stance in an uncertain environment - 19-06-2025
In this paper, we review the recent economic outlook, policy decisions and communication of the ECB against the backdrop of growing uncertainty. First, inflation heterogeneity has receded with inflation, thus contributing to facilitating the design of monetary policy. Second, monetary easing is somewhat dampened by the reduction in ECB’s balance sheet. Third, ECB has chosen to foreground uncertainty more explicitly in its public-facing communication, potentially as a tool to manage expectations and signal caution to a broader audience. Source : © European Union, 2025 - EP Read more