European Central Bank raises its three key interest rates by 25 basis points
In line with market expectations, the European Central Bank has increased its three key interest rates by 25 basis points and announced the effective date for the new rates.
The Governing Council of the European Central Bank decided to raise its three key interest rates by 25 basis points in line with market expectations. It was announced that the new interest rates will be effective starting September 16, 2026.
Interest Rates Increased
The Governing Council of the European Central Bank decided to increase its three key interest rates by 25 basis points in line with expectations. With this decision, the new interest rates will become effective as of September 16, 2026.
Inflationary Pressures and Risks
The institution stated that conflicts in the Middle East and rising bond yields continue to generate inflationary pressures. It was noted that inflation is expected to remain above target for an extended period.
Inflation Projections
According to updated staff projections, headline inflation is expected to average 3.0% in 2026, 2.5% in 2027, and 2.1% in 2028. It was emphasized that the decision aims to stabilize inflation at the 2% target over the medium term.
Economic Growth Forecasts
Based on the released data, economic growth is projected to be 0.9% in 2026, 1.4% in 2027, and 1.5% in 2028. Growth estimates have been shaped accordingly.