ECB interest rate decision
Policy rate vs the 2% target
The ECB sets one policy rate for the whole euro area, aiming at 2% inflation over the medium term. Euro-area HICP inflation is 3.8% in September 2026 — above the target — while the deposit facility rate is 2.50%. The gap between the two is what the Governing Council is steering when it decides to raise, hold or cut.
The ECB's main policy rate — the deposit facility rate — is 2.50%, last changed on 16 September 2026, when the Governing Council raised it by 25 basis points. The next decision is on 29 October 2026. It is the same rate for all 21 euro-area members — which is why inflation can run from 5%+ in the Baltics to near target in Germany under one policy.
How an ECB rate change spreads
The deposit facility rate is the anchor for what euro-area households and firms actually pay. When the ECB moves, it feeds through — with a lag — to the cost of mortgages, business loans and government borrowing:
Frequently asked questions
- What is the current ECB interest rate?
- The ECB deposit facility rate — its main policy rate — is 2.50%, last changed on 16 September 2026.
- When is the next ECB interest rate decision?
- The next ECB Governing Council monetary-policy decision is on 29 October 2026, in 24 days.
- What are the ECB's three key interest rates?
- Deposit facility rate 2.50%, main refinancing rate 2.65%, and marginal lending facility rate 2.90%.
- What is the ECB's inflation target?
- The ECB targets 2% inflation over the medium term, measured by the euro-area HICP. The target is symmetric: the Governing Council treats overshooting and undershooting as equally undesirable. Euro-area inflation is currently 3.8% (September 2026), above the target.
- Is euro-area inflation above or below the ECB target?
- Euro-area HICP inflation is 3.8% in September 2026, against the ECB's 2% medium-term target — above it. The deposit facility rate stands at 2.50%.