European Central Bank’s December 2025 monetary policy decision

The European Central Bank (ECB) announced its monetary policy decision on December 19, 2025. The decision includes the deposit facility rate, asset purchase programs, and outlook on inflation and economic growth for the euro area.

As of December 2025, the deposit facility rate remains at 2.0% per annum. The ECB’s asset side of the balance sheet shows ongoing asset purchase programs, including APP and PEPP, with latest observations for December 17, 2025.

The inflation outlook projects headline inflation at around 2.1% in 2025, with components such as food, energy, services, and non-energy inflation detailed in the projections. The macroeconomic outlook indicates a moderate growth rate of around 1.4% in real GDP for 2025.

The ECB highlighted risks to growth and inflation, including global trade volatility, geopolitical tensions, and climate-related factors. It also discussed the impact of recent fiscal measures and external economic developments on the euro area’s outlook.

Further details and technical assumptions are available in the ECB’s official report at ECB December 2025 press release.