Following its September meeting in Berlin, the European Central Bank (ECB) raised the deposit rate from 2.25% to 2.50%. The new rates will take effect on September 16, 2026.
The ECB also raised the refinancing rate to 2.65% and the marginal lending rate to 2.90%. With these steps, the bank signaled that its cycle of rate increases would continue.
Decisions tied to economic data
The ECB said it would maintain a data-dependent, meeting-by-meeting approach to monetary policy. The bank said this approach aims to return inflation to its 2% medium-term target.
The bank said there were upside risks to the inflation outlook and downside risks to economic growth. It added that uncertainty surrounding the economic outlook persisted.
The Governing Council said it would not make any advance commitment regarding the future course of monetary policy. It announced that subsequent steps would be determined entirely by economic data.
Asset purchase portfolios to be reduced
The ECB said it would continue reducing the portfolios of the Asset Purchase Programme and the Pandemic Emergency Purchase Programme at a measured and predictable pace.
The ECB announced that it would keep the Transmission Protection Instrument ready in case of disorderly market movements.