restriction. in particular, our interest rate decisions will be based on our assessment of the inflation outlook in light of the incoming economic and financial data, the dynamics of underlying inflation and the strength of monetary policy transmission. we are not pre - committing to a particular rate path. the decisions taken today are set out in a press release available on our website. as announced on 13 march 2024, some changes to the operational framework for implementing monetary policy will take effect from 18 september. in particular, the spread between the interest rate on the main refinancing operations and the deposit facility rate will be set at 15 basis points. the spread between the rate on the marginal 1 / 4 bis - central bankers'speeches lending facility and the rate on the main refinancing operations will remain unchanged at 25 basis points. i will now outline in more detail how we see the economy and inflation developing and will then explain our assessment of financial and monetary conditions. economic activity the economy grew by 0. 2 per cent in the second quarter, after 0. 3 per cent in the first quarter, falling short of the latest staff projections. growth stemmed mainly from net exports and government spending. private domestic demand weakened, as households consumed less, firms cut down business investment and housing investment dropped. while services supported growth, industry and construction contributed negatively. according to survey indicators, the recovery is continuing to face some headwinds. we expect the recovery to strengthen over time, as rising real incomes allow households to consume more. the gradually fading effects of restrictive monetary policy should support consumption and investment. exports should also continue contributing to the recovery as global demand rises. the labour market remains resilient. the unemployment rate was broadly unchanged in july, at 6. 4 per cent. at the same time, employment growth slowed to 0. 2 per cent in the second quarter, from 0. 3 per cent in the first. recent survey indicators point to a further moderation in demand for labour, and the job vacancy rate has fallen closer to prepandemic levels. fiscal and structural policies should be aimed at making the economy more productive and competitive, which would help to raise potential growth and reduce price pressures in the medium term. mario draghi's report on the future of european competitiveness and enrico letta's report on empowering the single market stress the urgent need for reform and provide concrete proposals to make this happen. implementing the eu's revised economic governance framework fully, transparently and without delay will

speech i gave in 2005 at jackson hole in wyoming, where central bankers from all around the world meet every year on an informal basis. back then, i explained that one of the conditions for boosting long - term confidence was to remain visibly and constantly in a state of alert. the experience of the most serious crisis since the second world war has only strengthened this conviction. more than ever, the benefit that the european central bank brings to europeans is to be an anchor of stability and confidence in a turbulent and demanding period. bis central bankers ’ speeches