President Lagarde presents the latest monetary policy decisions – 29 October 2026
Euro Matters – the European Central Bank PodcastSummary
The European Central Bank's Governing Council has decided to maintain its three key interest rates, as announced by President Christine Lagarde during a press conference. This decision comes amid rising energy prices that pose risks to both inflation and economic growth. While underlying inflation remains stable, the ECB acknowledges that the ongoing energy shock could lead to higher inflation and lower growth in the near future. The Council emphasizes a data-dependent approach to monetary policy, indicating that future interest rate decisions will be based on economic and financial data assessments.
The euro-area economy showed signs of expansion in the third quarter, supported by a recovery in services and government spending on infrastructure and defense. However, renewed energy price increases have negatively impacted consumer confidence, and higher financing costs are expected to weigh on growth. The unemployment rate remains steady at 6.4%, with subdued employment growth and gradual productivity improvements. The ECB highlights the importance of structural reforms and fiscal sustainability to bolster long-term economic stability.
Inflation has risen to 3.8% in September, driven by significant increases in energy prices. The ECB notes that while inflation expectations have increased in the short term, longer-term expectations remain around the 2% target. Risks to both growth and inflation are acknowledged, particularly due to geopolitical tensions and potential disruptions in energy supplies. The Governing Council remains committed to adjusting its monetary policy tools as necessary to ensure inflation stabilizes at the medium-term target while maintaining the smooth functioning of monetary policy transmission.
Show Notes
Today our Governing Council decided on monetary policy, determined to ensure that inflation stabilises at our two percent target in the medium term.
Listen to President Christine Lagarde present today’s decisions. The statement also covers: • how the economy is performing • how we expect prices to develop • the risks to the economic outlook • the dynamics behind financial and monetary conditions
Published and recorded during our press conference on 29 October 2026.
Our monetary policy statement at a glance, 29 October 2026 https://www.ecb.europa.eu/press/press_conference/visual-mps/2026/html/mopo_statement_explained_october.en.html
Christine Lagarde, Boris Vujčić: Monetary policy statement, 29 October 2026 https://www.ecb.europa.eu/press/press_conference/monetary-policy-statement/2026/html/ecb.is261029~5c5ffe99e5.en.html
Monetary policy decisions, 29 October 2026 https://www.ecb.europa.eu/press/pr/date/2026/html/ecb.mp261029~9a493adf17.en.html
Combined monetary policy decisions and statement, 29 October 2026 https://www.ecb.europa.eu/press/press_conference/monetary-policy-statement/shared/pdf/ecb.ds261029~3abd26884e.en.pdf
European Central Bank https://www.ecb.europa.eu/home/html/index.en.html
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