ECB account shows Governing Council backed a 25 basis point rate rise

International Economy Economy & Banking

ECB account shows Governing Council backed a 25 basis point rate rise

8 October 2026

The European Central Bank published on 8 October 2026 the account of its Governing Council meeting of 9-10 September 2026.
Mr Lane proposed raising all three key ECB interest rates by 25 basis points, including the deposit facility rate from 2.25% to 2.50%. The account records that all members supported the proposal and the Council took the monetary policy decisions. Markets had fully priced in a hike.
Headline HICP inflation rose to 3.3% in August from 2.9% in July; energy inflation rose to 14.3%.
September baseline projections: headline inflation of 3.0% (2026), 2.5% (2027) and 2.1% (2028); GDP growth of 0.9% (2026), 1.4% (2027) and 1.5% (2028).
Members assessed the risks to inflation to be to the upside and the risks to growth to the downside. The Council should keep a data-dependent, meeting-by-meeting approach with no pre-committed rate path.

Deposit facility rate backed by the Council: From 2.25% to 2.50% Headline HICP inflation, August: 3.3% Inflation projection 2026: 3.0% GDP growth projection 2026: 0.9%

Why it matters for exams: Central bank policy rates, HICP inflation and ECB procedure are standard economy and banking exam material.

UPSCBank

8 October 2026 Source: European Central Bank

In plain words

HICP Harmonised Index of Consumer Prices — The euro area's headline consumer price inflation measure.

Basis point One hundredth of a percentage point — 25 basis points equal 0.25 percentage points.

Deposit facility rate ECB rate on bank deposits — The rate banks earn on deposits at the ECB, the main policy rate.