European Central Bank Raises Rates Again as Energy Prices Push Inflation Up

The European Central Bank raised all three of its key interest rates by a quarter percentage point on Thursday, September 10, lifting its deposit rate to 2.50 percent and its main refinancing rate to 2.65 percent, according to the bank's announced rates as compiled by market data services. It was the ECB's second increase of 2026; in June it raised rates for the first time since September 2023, as the energy shock from the war in the Middle East pushed up prices across the euro area.

The bank had held rates in July, when President Christine Lagarde said policymakers had considered a hike but agreed unanimously to wait. Higher rates in Europe can strengthen the euro against the dollar, which affects the cost of European goods and travel for Americans.