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ECB Hikes Deposit Rate to 2.5 Percent

By Markets Desk · 2026-09-09 · Updated 2026-09-10 13:43 UTC
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Illustration: Tradingbird

The ECB has hiked its deposit rate to 2.5 percent to combat inflation driven by energy costs from the US-Iran conflict. With gas storage levels below norms, the bank warns that high prices will persist, projecting 2026 inflation at 3.0% and growth at 0.9%.

  • Deutsche Welle reports that the ECB cited the ongoing US-Iran conflict as a primary driver for keeping rates elevated, warning that energy costs will keep inflation well above target for an extended period. The central bank now forecasts eurozone inflation to average 3.0% this year and 2.5% in 2027, alongside a slight upward revision to 2026 growth at 0.9%.

    Source: Deutsche Welle

  • The European Central Bank has confirmed a quarter-point increase in its deposit rate to 2.5 percent, a strategic move designed to suppress inflation driven by energy costs while protecting economic stability.

    Source: GN markets/policy (en-US)
Based on reporting by GN markets/policy (en-US), GN markets/inflation (en-US) and Deutsche Welle, compiled by the Tradingbird desk.

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