ECB baseline economic growth forecast set at 0.9% for 2026

For Inflation Excluding Energy And Food, Baseline Foresees 2.5% In 2026, 2.6% In 2027 And 2.3% In 2028 Compared With June, Baseline Projection For Inflation In 2026 Is Unchanged, While It Has Been Revised Up For 2027 And 2028 Baseline Projection For Economic Growth Is 0.9% For 2026, 1.4% For 2027 And 1.5% For 2028 Outlook Remains Highly Uncertain, With Risks To Upside For Inflation And To Downside For Economic Growth In Relation To Energy Shock, Updated Scenarios Put Together By Staff Illustrate Broad Range Of Outcomes For How Growth And Inflation Would Evolve Under Different Assumptions About Its Intensity And Duration, As Well As Its Indirect And Second-Round Effects With Today s Decision, ECB Remains Well Positioned To Navigate Uncertainty Caused By Conflict It Will Follow A Data-Dependent And Meeting-By-Meeting Approach To Determining Appropriate Monetary Policy Stance In Particular, ECB s Interest Rate Decisions Will Be Based On Its Assessment Of Inflation Outlook And Risks Surrounding It, In Light Of Incoming Economic And Financial Data, As Well As Dynamics Of Underlying Inflation And Strength Of Monetary Policy Transmission ECB Is Not Pre-Committing To A Particular Rate Path Interest Rates ECB Decided To Raise Three Interest Rates By 25 Basis Points Accordingly, Interest Rates On Deposit Facility, Main Refinancing Operations And Marginal Lending Facility Will Be Increased To 2.50%, 2.65% And 2.90% Respectively, With Effect From 16 September 2026 App And Pandemic Emergency Purchase Programme (Pepp) App And Pepp Portfolios Are Declining At A Measured And Predictable Pace, As Eurosystem No Longer Reinvests Principal Payments From Maturing Securities ECB Stands Ready To Adjust All Of Its Instruments Within Its Mandate To Ensure That Inflation Stabilises At Its 2% Target In Medium Term And To Preserve Smooth Functioning Of Monetary Policy Transmission