The increased its key interest rate by 0.25 percentage points to 2.50 percent on September 10, 2026. This move, led by , marks the second hike this year following a June increase and sets the deposit rate at 2.50 percent.
inflation currently stands at 3.3 percent, exceeding the ECB target of 2.0 percent. While core inflation dipped from 2.5 to 2.4 percent, oil prices rose above $100 per barrel this week. Rates were last higher in February 2025 when they hit 2.75 percent.
Markets reacted downward following the announcement. The Euro-Stoxx-50 fell 0.52 percent to 6,278.73, while the DAX dropped 0.40 percent to 25,472.89. The FTSE-100 also declined 0.46 percent as officials like Joachim Nagel monitor these ongoing economic shifts.