Based on its regular economic and monetary analyses, the Governing Council decided at its meeting on 5 July to cut the key ECB interest rates by 25 basis points. Infl ationary pressure over the policy-relevant horizon has been dampened further as some of the previously identifi ed downside risks to the euro area growth outlook have materialised. Consistent with this picture, the underlying pace of monetary expansion remains subdued. Infl ation expectations for the euro area economy continue to be fi rmly anchored in line with the Governing Council’s aim of maintaining infl ation rates below, but close to, 2% over the ... (full story)