ECB Raises Interest Rates by 25 Basis Points Amid War‑Driven Inflation Pressures

On 11 June 2026, the European Central Bank’s Governing Council raised its three key policy rates by 25 basis points, lifting the deposit facility rate to 2.25%, the main refinancing rate to 2.40% and the marginal lending rate to 2.65%. The decision was taken to counter inflationary pressures that have risen as a result of the war in the Middle East. Staff projections show headline inflation averaging 3.0 % in 2026, falling to 2.3 % in 2027 and 2.0 % in 2028, while real GDP is expected to grow 0.8 % in 2026, 1.2 % in 2027 and 1.5 % in 2028. The ECB said it will continue to monitor the situation and use a data‑dependent approach.

© European Central Bank, 2025.
Summary derived from the ECB website (https://www.ecb.europa.eu ).

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