European Central Bank raises its three key interest rates by 25 basis points

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European Central Bank raises its three key interest rates by 25 basis points

2 October 2026

The Governing Council of the European Central Bank decided on 10 September 2026 to raise the three key ECB interest rates by 25 basis points.
The interest rates on the deposit facility, the main refinancing operations and the marginal lending facility were increased to 2.50%, 2.65% and 2.90% respectively, with effect from 16 September 2026.
The ECB said the conflict in the Middle East continues to generate inflation pressures and that inflation is set to remain well above target for an extended period.
The new ECB staff projections see headline inflation averaging 3.0% in 2026, 2.5% in 2027 and 2.1% in 2028.
The baseline projection for economic growth is 0.9% for 2026, 1.4% for 2027 and 1.5% for 2028.
Belgium is a euro area country, so these are the policy rates that apply to banks operating in Belgium.
The Governing Council said it is not pre-committing to a particular rate path and will work meeting by meeting.

Rate change: 25 basis points Deposit facility: 2.50% Main refinancing operations: 2.65% Marginal lending facility: 2.90% Effective from: 16 September 2026 Projected inflation 2026: 3.0%

Why it matters for exams: Euro area policy rates are standard banking and economy questions, and the deposit facility rate is the number most often asked.

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2 October 2026 Source: European Central Bank

In plain words

ECB European Central Bank — The central bank of the euro area, based in Frankfurt.

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

Deposit facility rate Rate on overnight deposits placed with the central bank — The euro area's main policy rate.

Governing Council The ECB's main monetary policy decision-making body — It brings together the ECB Executive Board and the governors of the euro area national central banks.