The European Central Bank raised its key interest rates by 25 basis points on September 10, 2026. The deposit facility rate reached 2.50%, the main refinancing operations rate rose to 2.65%, and the marginal lending facility hit 2.90%.
ECB President Christine Lagarde stated that the Governing Council did not discuss future rate changes. The bank maintains a meeting-by-meeting approach, basing decisions on incoming data rather than providing forward guidance.
This move follows a similar 25 basis point hike in June 2026, marking a shift from the aggressive tightening cycle observed in 2022-2023. The current strategy aims for incremental adjustments as the bank monitors economic indicators.
Staff projections estimate headline inflation at 3.0% for 2026, with a decline to 2.5% in 2027 and 2.1% in 2028. The bank maintains a 2% target. Geopolitical tensions in the Middle East remain a factor affecting energy market volatility.
