ECB raises rates by a quarter point; deposit rate at 2.50% before the 29 October meeting
The European Central Bank raised its three key rates by 25 basis points on 10 September 2026, bringing the deposit facility rate to 2.50%. The next decision is due on 29 October.
The Governing Council of the European Central Bank decided on 10 September 2026 to raise its three key interest rates by 25 basis points. From 16 September the deposit facility rate stands at 2.50%, the main refinancing rate at 2.65% and the marginal lending facility rate at 2.90%.
The ECB pointed to inflation and identified the conflict in the Middle East as a continuing source of price pressure. It repeated that it follows a data-dependent, meeting-by-meeting approach and does not pre-commit to a particular path for rates.
The account of the September meeting, published on 8 October, noted that markets had fully priced the increase in advance and that survey expectations pointed to the deposit rate levelling off at 2.50% after it.
The next monetary policy decision is due on Thursday 29 October 2026, the day after the US Federal Reserve's own meeting ends.
Why it matters: the difference between interest rates in the euro area and in the United States is one of the main drivers of the euro-dollar exchange rate. With the Fed at 3.75%-4% and the ECB at 2.50%, every decision on either side of the Atlantic moves currency markets.