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ECB raises key rates by 25 bps, keeps inflation risks in focus

After the September decision, the deposit facility rate is 2.5%, and Lagarde said headline inflation is expected to remain above target through the first half of 2027.

Reported · Written up by our desk · Central Banks

The European Central Bank raised its key rates by 25 basis points at its September policy meeting, according to FXStreet coverage of ECB President Christine Lagarde’s press remarks.

FXStreet reported that, after the hike, the main refinancing operations rate stands at 2.65%, the marginal lending facility at 2.9%, and the deposit facility at 2.5%.

Lagarde pointed to resilient Eurozone growth, robust labour markets, and an improved near term outlook, while also highlighting persistent inflation risks, including energy shocks feeding into core and food inflation.

The ECB guidance underscored that headline inflation is expected to stay above target through the first half of 2027, with optionality preserved through a data dependent, meeting by meeting approach, FXStreet said.

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