The ECB Podcast President Lagarde presents the latest monetary policy decisions – 30 October 2025
Oct 30, 2025
Christine Lagarde, President of the European Central Bank and former Managing Director of the IMF, discusses the latest monetary policy decisions and economic assessment for the euro area. She reveals that key interest rates will remain unchanged and delves into recent economic growth, spurred by tourism and digital services. Lagarde also highlights the challenges posed by global trade tensions, ongoing inflation dynamics, and the advancement of the Digital Euro Project, outlining the intricate balance of risks and reforms needed for future stability.
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Rates Held Steady Pending Data
- The Governing Council kept the three key ECB interest rates unchanged to ensure inflation stabilises around 2% in the medium term.
- Christine Lagarde emphasized a data-dependent, meeting-by-meeting approach without pre-committing to a rate path.
Services Drive Growth, Manufacturing Slows
- Euro area GDP grew 0.2% in Q3, driven by services, tourism and digital services adoption.
- Manufacturing underperformed due to higher tariffs, uncertainty and a stronger euro, creating domestic-external demand divergence.
Prioritise Reforms And Digital Money
- Governments should prioritise growth-enhancing structural reforms and strategic investment while keeping public finances sustainable.
- Complete capital market and banking union integration and adopt digital euro regulation rapidly to strengthen resilience.