ECB raises rates 25 basis points to 2.50 percent

The European Central Bank raised its key interest rates by 25 basis points on Thursday, September 10, 2026, resuming its monetary tightening campaign after a pause in July. The move lifts the Deposit Facility Rate to 2.50 percent and the Main Refinancing Operations Rate to 2.65 percent, the second increase this year and one that reverses half of the easing delivered between June 2024 and June 2025. The decision follows a renewed acceleration in eurozone inflation. Eurostat's flash estimate showed headline inflation in the countries using the euro reached 3.3 percent in August, up from 2.9 percent in July and a nearly three-year high, well above the ECB's 2 percent target. Energy inflation jumped to 14.3 percent from 10.3 percent, while services inflation eased to 3.0 percent and inflation excluding energy held at 2.2 percent. The energy shock is tied to renewed hostilities in the Middle East. Oil prices climbed back above $100 per barrel this week as the Iran conflict escalated, and disruptions around the Strait of Hormuz pushed European gas prices to their highest levels since 2022.