European Central Bank Raises Interest Rates by Twenty Five Basis Points
The ECB has increased its key interest rates by 25 basis points to combat persistent inflationary pressures.
By Orion Desk
The Governing Council announced a 25 basis point hike to the three key ECB interest rates, effective 16 September 2026. This move pushes the deposit facility, main refinancing operations, and marginal lending facility rates to 2.50%, 2.65%, and 2.90% respectively, citing concerns that inflation will remain above the 2% target for an extended period.
Traders monitoring the euro will note that the central bank intends to maintain a data-dependent, meeting-by-meeting approach without pre-committing to future rate paths. While staff projections for inflation were revised upwards for 2027 and 2028, the bank also acknowledged the ongoing reduction of its APP and PEPP asset portfolios.
Originally published by European Central Bank
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