Stretched valuations in increasingly concentrated asset markets raise risk of sharp price adjustmentsFiscal challenges in some advanced economies could test investor confidenceExposures to tariff-sensitive firms and stronger funding ties with non-banks could strain euro area banks during periods of economic or market stressEuro area banking sector is resil...
Prepared by Marianna Caccavaio, Carlo Cascini, Cyril Couaillier, Giorgia De Nora, Mara Pirovano and Frances ShawPublished as part of the Macroprudential Bulletin 32, November 2025.Early activation of the countercyclical capital buffer (CCyB), including adoption of a targeted “positive neutral” rate (PNR), has become an increasingly common practice w...
Economic, financial and monetary developmentsSummaryAt its meeting on 30 October 2025, the Governing Council decided to keep the three key ECB interest rates unchanged. Inflation remains close to the 2% medium-term target and the Governing Council’s assessment of the inflation outlook is broadly unchanged. The economy has continued to grow despite the cha...
New phase will ensure technical readiness for first issuanceIf legislation in place in the course of 2026, a pilot exercise could start in 2027 and the Eurosystem should be ready for a potential first issuance of the digital euro during 2029Preparation phase begun in November 2023 has successfully concludedThe Governing Council of the European Central Bank...
Jump to the transcript of the questions and answersGood afternoon, the Vice-President and I welcome you to our press conference. I would like to thank Governor Panetta for his kind hospitality and express our special gratitude to his staff for the excellent organisation of today’s meeting of the Governing Council.The Governing Council today decided to kee...
The Governing Council today decided to keep the three key ECB interest rates unchanged. Inflation remains close to the 2% medium-term target and the Governing Council’s assessment of the inflation outlook is broadly unchanged. The economy has continued to grow despite the challenging global environment. The robust labour market, solid private sector balan...
Small, unexpected net tightening of credit standards for loans to firmsCredit standards unchanged for housing loans and moderately tighter for consumer creditDemand for loans to firms increased slightly, but still weak overallHousing loan demand continued to increase stronglyAccording to the October 2025 bank lending survey (BLS), euro area banks reported ...
European System of Central Banks publicly reaffirms commitment to updated FX Global CodeCode promotes robust, fair, liquid, open and appropriately transparent foreign exchange marketCode first published in 2017 and updated in December 2024The European System of Central Banks (ESCB) welcomes the latest update of the FX Global Code, published in December 202...
Experimentation with almost 70 market participants highlights digital euro’s potential to foster innovation and financial inclusionECB to launch second round of experimentation through platform next year to maximise innovation potentialConditional payments identified as possible key driver of innovation for consumers and businessesA digital euro could fos...
OverviewAt its meeting on 11 September 2025, the Governing Council decided to keep the three key ECB interest rates unchanged. Inflation is currently at around the 2% medium-term target and the Governing Council’s assessment of the inflation outlook is broadly unchanged.The September 2025 ECB staff macroeconomic projections for the euro area present a pic...
