Lending rates are the composite rate, incorporating all loan types and lengths, for both households and corporates. Conclusion The Governing Council has increased interest rates in order to counter the increase in inflation brought about by successive and over-lapping supply shocks.
Looking ahead, the ECB staff’s latest (March) macroeconomic projections see headline inflation at 2.1 per cent and core inflation at 2.2 per cent in 2025. This shows that our monetary policy tightening is taking effect, but we must remain steadfast, and ready to act as required, to ensure we reach our target over the medium-term.