Frankfurt, December 17, 2025 – The European Central Bank (ECB) has decided to keep interest rates at 2%, marking a pause in its monetary policy amid growing economic uncertainty and inflationary pressures. This decision aligns with its “wait and see” strategy, allowing for an evaluation of the effects of previous adjustments on the eurozone economy.
Since the beginning of this rate hike cycle, the ECB has raised rates by a total of 400 basis points; however, the inflation rate has recently tempered, closing at 4.3% in September. This moderation has prompted the institution to adopt a cautious stance. The decision also reflects the need to balance economic growth with price stability, in an environment where growth in the eurozone has lagged following the initial post-pandemic boost.
The ECB's prudence contrasts with the more aggressive policies adopted by other central banks, which are seeking to combat persistently high inflation. By taking this measure, the ECB has made it clear that it is willing to be patient, observing how economic indicators develop before making further decisions.
This approach has sparked a robust domestic debate over the effectiveness of current monetary policy, as some experts argue that keeping rates low may not be sufficient to adequately boost the economy in the current climate of recurring inflationary tensions. Attention will be focused on the coming months, where more signs are expected regarding the impact of these decisions.
In conclusion, the ECB positions itself as a key player in the delicate balance between stimulating the economy and controlling inflation, maintaining its commitment to price stability while being aware of the need to adapt to a constantly changing economic landscape.
