ECB's Commitment to Inflation Target

In its first economic bulletin of 2025, the European Central Bank (ECB) has reaffirmed its dedication to achieving a 2% annual inflation rate within the Eurozone. The ECB plans to base its future monetary policy decisions on incoming data, emphasizing the importance of the inflation outlook, underlying inflation dynamics, and the strength of monetary policy transmission. The Governing Council has clarified that it is not pre-committing to a specific rate path, indicating a flexible approach to future decisions.

Economic Recovery in the Eurozone

Regarding the Eurozone's gross domestic product (GDP), the ECB remains optimistic about the conditions for recovery. It highlights the stable labor market and higher incomes as positive indicators. Furthermore, the ECB advocates for fiscal and structural policies designed to enhance the continent's competitiveness, suggesting a comprehensive approach to economic revitalization.