Central Banks
ECB Delivers 25 Basis Point Rate Hike to 2.65% Amid Surging Energy Prices
10 Sep 2026
The European Central Bank raised its benchmark interest rates by 25 basis points on September 10, taking the main refinancing rate to 2.65% and the deposit facility rate to 2.50%. The Governing Council noted that headline eurozone inflation accelerated to 3.3% year-over-year in August, driven largely by resurgent energy prices and ongoing Middle East supply disruptions. The ECB revised its 2026 and 2027 GDP growth and inflation projections modestly higher following stronger-than-expected Q2 GDP expansion of 0.6%, reinforcing its commitment to a data-dependent, meeting-by-meeting approach.
Why it matters
EUR strengthened modestly across major crosses, though gains against USD were limited as policy tightening expectations and rising yields also advanced in the United States.