#SAVINGS & FINANCIAL PRODUCTS
"When the economy slows, the central bank cuts rates." In September 2026 the ECB raises its own by 0.25 points (deposit rate: 2.50%), while projecting 0.9% growth and 3.0% inflation.
Published on October 2, 2026 · to be rechecked on December 31, 2026
On 10 September 2026 the ECB Governing Council decided to raise its three key interest rates by 25 basis points. From 16 September, the deposit facility rate is 2.50% (from 2.25%), the main refinancing operations rate 2.65% (from 2.40%) and the marginal lending facility rate 2.90% (from 2.65%). The ECB says the conflict in the Middle East continues to generate inflation pressures and that inflation is set to remain well above target for an extended period. Its projections: inflation of 3.0% in 2026, 2.5% in 2027 and 2.1% in 2028; growth of 0.9% in 2026, 1.4% in 2027 and 1.5% in 2028.
Why did the ECB raise rates?
Because it judges that inflation will stay well above its target for an extended period, because of the conflict in the Middle East.
In other words: the ECB is raising rates by 0.25 points while projecting 3.0% inflation and 0.9% growth for 2026.
Four caveats that belong with the number
- Key rates are those at which the ECB lends to banks and pays interest on their deposits: they do not directly set the rates on savings accounts or on consumer loans.
- The inflation and growth figures are ECB projections, not measurements; they may be revised.
- The ECB says it decides meeting by meeting, based on the data, without committing to a future path for rates.
- The deposit rate was 2.00% at end-April 2026 and 2.25% on 23 July: it is therefore up 0.50 points since April (Ze Finance calculation).
Why it still matters: the level of key rates is the reference for the cost of money in the euro area; what you pay or earn then depends on your bank and your product.
For you
- Do you know whether your loan is at a fixed or a variable rate?
- Do you know what rate your bank pays on your deposits?
Source: European Central Bank, "Monetary policy decisions", 10 September 2026; ECB monetary policy statement, 10 September 2026.
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