Keynote speech by Philip R. Lane, Member of the Executive Board of the ECB, at the ECB Conference on Monetary Policy 2025: bridging science and practice

Frankfurt am Main, 6 October 2025

My aim today is to explain the conduct of monetary policy in the euro area.^[1] I will first outline the approach to monetary policy that is embedded in our monetary policy strategy statement. Next, I will review the current inflation outlook. Finally, I will outline the considerations most relevant for our near-term policy decisions.

The monetary policy strategy of the ECB

Our recently-updated monetary policy strategy statement provides a comprehensive strategic framework for many dimensions of monetary policy.^[2] Here, I will focus on the elements that are most directly relevant for monetary policy decision making.

Paragraph five of our monetary policy strategy statement states:

The Governing Council considers that price stability is best maintained by aiming for two per cent inflation over the medium…