ECB Boosts Interest Rates Amid Middle East-Driven Inflation Concerns

The European Central Bank (ECB) has increased its three key interest rates by 25 basis points in response to rising inflation pressures, mainly linked to the conflict in the Middle East.

Effective from September 16, 2026, the new interest rates will be 2.50 per cent for the deposit facility, 2.65 per cent for the main refinancing operations, and 2.90 per cent for the marginal lending facility.

The ECB has projected euro area economic growth of 0.9 per cent in 2026, with inflation averaging 3.0 per cent that same year.