Based on its regular economic and monetary analyses, the Governing Council decided at its meeting on 3 November 2011 to reduce the key ECB interest rates by 25 basis points. While inflation has remained elevated and is likely to stay above 2% for some months to come, inflation rates are expected to decline in the course of 2012 to below 2%. At the same time, the underlying pace of monetary expansion continues to be moderate. After this month’s decision, inflation should remain in line with price stability over the policy-relevant horizon. Owing to their unfavourable effects on financing conditions and confidence, the ... (full story)