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
29. October 2026 - ECB takes a break from hiking rates
At its October meeting, the European Central Bank (ECB) left key interest rates unchanged, as expected.
Energy prices have risen further, increasing upside risks to inflation and downside risks to growth, according to the ECB’s statement on the interest rate decision.
Furthermore, underlying inflation has remained broadly stable so far, as Christine Lagarde, President of the ECB, explained during the press conference. The greater scale and longer duration of the energy shock, as well as its indirect consequences and second-round effects, are likely to push up inflation and dampen growth, the press release said. The ECB is therefore anticipating second-round effects.
Given this wording, further interest rate increases appear likely. A further tightening of monetary policy in December therefore seems all but certain. Lagarde pointed out that more information on inflation trends would be available by then.
The interest rate path for the coming year, however, remains unclear. As the ECB suggests that inflationary pressures remain elevated, interest rate increases in 2027 cannot be ruled out. However, this decision will fall to the person who succeeds Lagarde. Even before the interest-rate announcement, the ECB had stated that Lagarde would step down in early February 2027.
According to the ECB’s statement, a further interest rate rise appears likely in December 2026.
Dr Thomas Gitzel Chief Economist
Current ECB key interest rates
(as at 29 October 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:
- 17 December 2026
- 4 February 2027
- 18 March 2027
- 29 April 2027
- 10 June 2027
- 22 July 2027
- 9 September 2027
- 28 October 2027
- 16 December 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.