LAGARDE: ECB keeps all three key interest rates unchanged.
- Inflation expected to stabilise at the 2% target over the medium term.
- ECB staff sees headline inflation at 2.1% in 2025 and 1.9% in 2026.
- Core inflation excluding food and energy seen easing toward 2% by 2028.
- 2026 inflation revised higher due to slower decline in services inflation.
- Economic growth outlook revised higher, driven mainly by domestic demand.
- ECB will remain data-dependent and decide policy meeting by meeting.
- ECB does not pre-commit to a specific interest rate path.
- Asset purchase programme and PEPP portfolios continue to decline gradually.