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ECB raises rates for the second time this year: deposit rate goes to 2.50% on 16 September
On 10 September the ECB decided to raise its three key interest rates by 25 basis points, effective 16 September, citing inflation pressures from the conflict in the Middle East.
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2.50%
The Governing Council of the European Central Bank (ECB) decided on 10 September 2026 to raise the three key ECB interest rates by 25 basis points. The new rates apply from 16 September 2026. It is the second increase this year, following the one in June.
The new rates
| Rate | Since 17 June 2026 | From 16 September 2026 |
|---|---|---|
| Deposit facility | 2.25% | 2.50% |
| Main refinancing operations | 2.40% | 2.65% |
| Marginal lending facility | 2.65% | 2.90% |
- Mar 2025: 2.5%
- Apr 2025: 2.3%
- Jun 2025: 2%
- Jun 2026: 2.3%
- Sep 2026: 2.5%
Why rates went up
According to the ECB’s press release, the conflict in the Middle East continues to generate inflation pressures, and inflation is set to remain well above the 2% target for an extended period.
The new ECB staff projections, in the baseline scenario:
| 2026 | 2027 | 2028 | |
|---|---|---|---|
| Headline inflation | 3.0% | 2.5% | 2.1% |
| Inflation excluding energy and food | 2.5% | 2.6% | 2.3% |
| Economic growth | 0.9% | 1.4% | 1.5% |
Compared with June, the inflation projection for 2026 is unchanged, while those for 2027 and 2028 have been revised up. Growth has been revised up for 2026 and 2027.
What comes next
- The ECB says it will decide meeting by meeting, based on the data, and is not pre-committing to a particular rate path.
- It sees risks to the upside for inflation and to the downside for growth.
- The asset purchase programme portfolios (APP and PEPP) keep declining, with no reinvestment of maturing securities.
For businesses
Companies with variable-rate financing should check in their contract which benchmark rate applies and when the next rate reset is due — that is when a change in borrowing costs reaches cash flow. To test how long your cash position holds with higher financing costs, you can use the .
Source: Banco Central Europeu