ECB interest rate decisions
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All about interest rate decisions and key short term interest rates
Here you will find the current ECB key interest rate, our assessment of the ECB’s next interest rate decision and the key factors that will determine the future direction of interest rates.
Commentary on the ECB’s latest interest rate decision
10. September 2026
The European Central Bank (ECB) raised its key interest rate by 25 basis points, as expected. The deposit rate now stands at 2.5%.
The inflation rate in the eurozone had recently risen above 3% again. This was reason enough for the central bank to raise rates further. The conflict in the Middle East is expected to continue to generate inflationary pressure, and inflation is likely to remain well above target for an extended period, according to the ECB.
In the baseline scenario of the latest projections, the ECB’s economists expect average headline inflation to stand at 3.0% in 2026, 2.5% in 2027 and 2.1% in 2028. In the baseline scenario, inflation excluding energy and food is projected to be 2.5% in 2026, 2.6% in 2027 and 2.3% in 2028. Compared with June, the baseline projection for 2026 remains unchanged, while those for 2027 and 2028 have been revised upwards.
The ECB continues to keep all options open. During the press conference, ECB President Christine Lagarde remained tight-lipped. The Governing Council would decide on a meeting-by-meeting basis; there is no pre-determined course of action.
However, representatives of the central bank emphasised that inflation risks remain tilted to the upside. This certainly suggests that further monetary tightening cannot be ruled out. Although our base case continues to assume that key interest rates will remain unchanged this year, the likelihood of another rate hike increased significantly in light of the hawkish tone.
The ECB continues to keep all options open.
Dr Thomas Gitzel Chief Economist
Current ECB key interest rates
(as at 10 September 2026)
The European Central Bank uses three interest rates to implement its monetary policy. The following interest rates have been in force since 10 September 2026 (cf. the European Central Bank’s statement)
- Deposit rate: 2.50 %
- Main refinancing rate: 2.65 %
- Marginal lending rate: 2.90%
The deposit rate is the most important interest rate. It specifies the interest that banks receive on liquidity they place with the central bank.
What is the ECB’s objective in making these interest rate decisions?
The central bank monitors numerous economic indicators and draws conclusions from them in order to tailor its monetary policy accordingly. The aim is to ensure price stability. Specifically, the target is to achieve an inflation rate of 2 per cent. Neither too low nor too high an inflation rate is desirable. The central bank uses short-term interest rates to try to influence price trends.
FAQ
The ECB’s key interest rate, known as the deposit rate, stands at 2.50 per cent. The main refinancing rate for banks is 2.65 per cent and the marginal lending rate is 2.90 per cent. These interest rates have been in force since 10 September 2026.
The ECB raises its key short-term interest rates when it fears that the inflation rate may remain above the 2 per cent inflation target for an extended period. Higher interest rates make credit more expensive, make saving more attractive and can slow down consumption and investment.
The ECB will base its future interest rate decisions primarily on the following factors:
- Economic growth
- Trends in various inflation rates across the euro area
- The impact of geopolitical risks on economic growth and price trends
- Trends in expected inflation
The ECB usually takes its monetary policy decisions approximately every six weeks. The next decision will take place on 29 October 2026.
Below are the dates of the ECB’s forthcoming interest rate decisions:
- 29 October 2026
- 17 December 2026
- 4 February 2027
- 18 March 2027
- 29 April 2027
- 10 June 2027
The European Central Bank aims for an inflation rate of 2 % in the euro area in the medium term. Short-term fluctuations are possible. What matters is that inflation stabilises at this target over the medium term.
If it concludes that inflation will return to the 2 per cent target.
Talk to our experts
Would you like to know how current interest rate trends in the eurozone might affect your investments or your financial situation? Our experts will be happy to help you make sense of the latest developments.
Talk to our experts
Would you like to know how current interest rate trends in the eurozone might affect your investments or your financial situation? Our experts will be happy to help you make sense of the latest developments.