The ECB will increase interest rates by 0.25 percentage points from 16 September, amid pressure on inflation.
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Author: Redaction
ECB changes rates from September
The European Central Bank (ECB) has decided to raise all three key interest rates by 0.25 percentage points. The change will take effect on 16 September 2026 and comes amid new pressures on prices.
With the decision, the deposit facility rate will rise to 2.50%, while the rate on main refinancing operations will increase to 2.65%. The marginal lending facility rate will stand at 2.90%.
The rate increase aims to keep inflation under control and bring it closer to the 2% target over the medium term. Price developments remain, however, affected by international instability and rising energy costs.
Inflation expected to remain above 2%
The ECB's new projections point to headline inflation of 3% in 2026. The forecast is for a decline to 2.5% in 2027 and 2.1% in 2028, remaining above the target for part of the period.
When energy and food prices are excluded, inflation is expected to reach 2.5% in 2026 and 2.6% in 2027, before falling to 2.3% in 2028.
The evolution of interest rates will remain crucial for the eurozone economy. A more restrictive monetary policy can help curb rising prices, but it can also weigh on consumption and investment.
Economy maintains growth outlook
Despite the uncertainty, the ECB has revised upwards its forecasts for economic growth in the euro area. The economy is expected to grow by 0.9% in 2026, 1.4% in 2027 and 1.5% in 2028. The central bank considers that the European economy has shown greater resilience than initially expected. However, the international context remains uncertain, particularly due to risks associated with the conflict in the Middle East and developments in energy prices. Against this backdrop, the ECB is expected to continue assessing economic data at each meeting. Developments in inflation, growth and energy costs will be decisive for future decisions on interest rates.
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