ECB’s Müller: Current Interest Rates “Support the Economic Recovery”

12 September 2025

ECB’s Müller: Current Interest Rates “Support the Economic Recovery”
Madis Müller, governor of Eesti Pank, at the European Central Bank Forum on Central Banking in Sintra, Portugal on June 27, 2023. Sérgio Garcia/ECB under CC BY-NC-ND 2.0.

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Madis Müller said on Friday that interest rates were at the correct level and supported economic growth.

In a blogpost on the website of the Eesti Pank, which he heads, Müller said that interest rates were “currently in the right place” given the economic recovery and inflation’s proximity to 2%.

“Interest rates are at a level that supports the economic recovery, especially given that the impact of the previous rate cuts has not yet fully taken effect”, he said.

Müller noted that the Governing Council had agreed to evaluate possible rate decisions in the coming weeks and months, depending on economic data.

Higher projections for economic growth could be explained by the increase of industrial orders and household consumption, he said.

“Lower interest rates are contributing to the growth of both corporate investments and real estate transactions”, he said. “Economic growth in the euro area over the next few years is expected to be driven by stronger consumption and investments, including larger state investments in defence capabilities and infrastructure.”

He also pointed out that the ECB’s projections did not factor in a potential export boost, despite reduced trade-related uncertainty.

 

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