ECB Lifts Rates 25 Basis Points to 2.5% as Eurozone Inflation Tops 3%
Updated
Updated · DW (English) · Sep 10
ECB Lifts Rates 25 Basis Points to 2.5% as Eurozone Inflation Tops 3%
3 articles · Updated · DW (English) · Sep 10
Summary
The ECB delivered its second rate increase of 2026, lifting its deposit rate to 2.50% from 2.25% to counter inflation it says will stay above target for an extended period.
Energy costs are driving the move: oil and natural gas prices have surged since the late-February US-Iran war, pushing inflation above the ECB’s 2% goal in the 21-country eurozone.
The bank now sees 2026 growth at 0.9%, up slightly from 0.8% in June, while forecasting inflation to average 3.0% this year and 2.5% in 2027.
Higher rates will raise borrowing costs for mortgages, consumer credit and business loans, even as the ECB says risks still point to hotter inflation and weaker growth.
Gas storage remains below historical norms ahead of winter, reinforcing concern that the latest energy shock could keep eurozone price pressures elevated much as in 2022 after Russia invaded Ukraine.