Interest Rates, Inflation, and the Economy: How Does the Central Bank Navigate Turbulent Times?
In 2026, price increases in the eurozone are expected to once again rise significantly above the ECB’s 2.0% target, which ensures price stability. The main reason for the renewed rise in prices is the impact of the U.S.-Iran conflict: Rising energy prices and supply chain disruptions are driving up the cost of many everyday items.
To prevent these price increases from becoming entrenched and triggering a chain reaction, the Eurosystem has already taken action: In June 2026, key interest rates were raised again.
What does the future hold for interest rates and prices? And how can the central bank curb price increases without hurting the economy?
In this presentation, we’ll take you on an accessible journey behind the scenes of monetary policy:
Where are we headed? How interest rates and prices might develop from here.
What does this mean for you? How the tension between inflation and interest rates affects our money in everyday life.
