Key facts
- Euro area inflation was 3.8% in September.
- ECB expects energy costs to ease next year.
- ECB is preparing a digital euro for retail payments.
- ECB launched Pontes for wholesale tokenized asset transactions.
European Central Bank President Christine Lagarde said the euro area's September inflation rate of 3.8% was largely driven by high energy costs, which are expected to decrease next year. Despite inflation potentially remaining above the ECB's target through the first half of 2027, Lagarde indicated that a measured policy response is appropriate. She also announced that the ECB is developing a digital euro to complement cash for daily retail payments, aiming to foster innovation and competition in the payments sector. The ECB has also launched Pontes, a system enabling financial institutions to settle wholesale tokenized asset transactions using central bank money, with full implementation anticipated by 2028.