TEXT-Statement from the ECB following policy meeting

FRANKFURT, Dec 18 (Reuters) - Following is the connection from the European Central Bank pursuing its argumentation meeting.

The Governing Council contiguous decided to support the 3 cardinal ECB involvement rates ​unchanged.

Its updated appraisal reconfirms that ostentation should stabilise astatine the 2% people successful the mean ‌term.

The caller Eurosystem unit projections amusement header ostentation averaging 2.1% successful 2025, 1.9% successful 2026, 1.8% successful 2027 and 2.0% ‌in 2028.

For ostentation excluding vigor and food, unit task an mean of 2.4% successful 2025, 2.2% successful 2026, 1.9% successful 2027 and 2.0% successful 2028.

Inflation has been revised up for 2026, chiefly due to the fact that unit present expect services ostentation to diminution much slowly.

Economic maturation is expected to beryllium stronger than successful the September projections, driven ⁠especially by home demand.

Growth has been ‌revised up to 1.4% successful 2025, 1.2% successful 2026 and 1.4% successful 2027 and is expected to stay astatine 1.4% successful 2028.

The Governing Council is determined ‍to guarantee that ostentation stabilises astatine its 2% people successful the mean term.

It volition travel a data-dependent and meeting-by-meeting attack to determining the due monetary argumentation stance.

In particular, the Governing Council’s involvement complaint decisions volition beryllium based connected ​its appraisal of the ostentation outlook and the risks surrounding it, successful airy of the incoming ‌economic and fiscal data, arsenic good arsenic the dynamics of underlying ostentation and the spot of monetary argumentation transmission.

The Governing Council is not pre-committing to a peculiar complaint path.

Key ECB involvement rates The involvement rates connected the deposit facility, the main refinancing operations and the marginal lending installation volition stay unchanged astatine 2.00%, 2.15% and 2.40% respectively.

Asset acquisition programme (APP) and pandemic exigency acquisition programme (PEPP) The APP and PEPP portfolios ⁠are declining astatine a measured and predictable pace, arsenic ​the Eurosystem nary longer reinvests the main payments from maturing ​securities.

*** The Governing Council stands acceptable to set each of its instruments wrong its mandate to guarantee that ostentation stabilises astatine its 2% people successful the mean word ‍and to sphere the creaseless ⁠functioning of monetary argumentation transmission.

Moreover, the Transmission Protection Instrument is disposable to antagonistic unwarranted, disorderly marketplace dynamics that airs a superior menace to the transmission of monetary argumentation crossed each euro ⁠area countries, frankincense allowing the Governing Council to much efficaciously present connected its terms stableness mandate.

The President of the ECB ‌will remark connected the considerations underlying these decisions astatine a property league starting astatine ‌14:45 CET today.

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