ECB Hikes Interest Rates Amid Ongoing Inflationary Pressures

The European Central Bank's (ECB) Governing Council has raised three key interest rates by 25 basis points, as of September 16th, 2026. The deposit facility rate is now at 2.50%, while the main refinancing operations and marginal lending facility are set at 2.65% and 2.90%, respectively.

The decision aims to combat inflation pressures stemming from the conflict in the Middle East, which continues to drive up prices. According to the ECB's monetary policy statement, inflation is expected to remain above target for an extended period.

The updated staff projections indicate that headline inflation will average 3.0% in 2026 and 2.5% in 2027, while inflation excluding energy and food will be around 2.5% in 2026 and 2.6% in 2027.