Two years ago, we started raising interest rates because inflation was far too high. Today, the situation is improved. Although some prices are still going up markedly, especially in the services sector, inflation overall has come down a lot. It is currently on track to reach 2% next year, which is the level that we target in our pursuit of price stability. The decline in inflation allows the ECB to lower interest rates, and on Thursday we cut our key policy rate by 0.25 percentage points, down from 4% where it had been for nine months. This means that it will be cheaper for people to borrow money or for companies to ... (full story)