The European Central Bank (ECB) reduced its three main policy rates by a total of 100 basis points during 2025, cutting the deposit‑facility rate to 2.00% by June. The Governing Council followed a data‑dependent, meeting‑by‑meeting approach, guided by the inflation outlook, underlying inflation dynamics and the strength of monetary transmission. The cuts were justified by the ECB’s assessment that headline inflation, which averaged 2.1% in 2025, was moving sustainably toward the 2 % medium‑term target. The policy easing was aimed at supporting growth while keeping inflation expectations well anchored, as the ECB’s long‑term forecasts and survey data indicated. The rate reductions were announced at the council’s four annual meetings in January, March, April and June.
© European Central Bank, 2025.
Summary derived from the ECB website (https://www.ecb.europa.eu ).
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