🇪🇺The European Central Bank raised its deposit rate to 2.5%, from 2.25%, and its other announced interest rate to 2.65%.

FinancialJuice reported a European Central Bank (ECB) deposit rate of 2.5%, versus 2.25% previously, matching the reported forecast. A separate release recorded an “ECB interest rate” of 2.65%, versus 2.40% previously; the supplied message does not identify that rate by facility name.

The ECB’s reported staff projections put headline inflation at 3.0% in 2026, 2.5% in 2027, and 2.1% in 2028. Inflation excluding energy and food was projected at 2.5%, 2.6%, and 2.3%, respectively; the ECB said headline projections were unchanged from June for 2026 but revised higher for 2027 and 2028.

Baseline economic-growth forecasts were 0.9% for 2026, 1.4% for 2027, and 1.5% for 2028. The ECB attributed continuing inflation pressure to the Middle East conflict and characterized the outlook as highly uncertain, with upside inflation risks and downside growth risks.

The ECB reiterated a data-dependent, meeting-by-meeting approach without committing to a particular rate path. President Christine Lagarde said the future rate path had not been debated; separately, she identified significant AI financing needs as “a key driver” and said the ECB was monitoring bond markets, particularly longer maturities.