The ECB raises rates to 2.50%: borrowing gets more expensive in Europe
The ECB raises rates to 2.50%: borrowing gets more expensive in Europe
The European Central Bank, the body that manages money in the euro area, raised its interest rates by a quarter of a point on Thursday, September 10. It is the second increase this year.
What it decided exactly
It raised its three main rates. The new levels apply from September 16, 2026.
| Rate | New level |
|---|---|
| Deposit facility | 2.50% |
| Main refinancing operations | 2.65% |
| Marginal lending facility | 2.90% |
The ECB explained that the war in the Middle East is pushing prices up and that inflation, meaning the general rise in prices, will stay above its 2% target for an extended period.
What it means for people
When a central bank raises its rates, the money banks lend becomes more expensive. Anyone taking out a new loan pays higher installments, and companies find it harder to get financing.
The ECB sets rates for the 20 countries that use the euro. Its decisions reach people mainly through loans: mortgages with variable rates, consumer credit and business loans. When rates go up, those monthly payments go up too.
It is a measure to slow price increases: if credit is more expensive, families and companies spend less and prices calm down. The risk is the other side of the coin: the economy cooling more than needed.
The effect was fast in the markets. Euro area debt fell in price and bond interest rates rose: in Germany above 3.5% and in the United Kingdom to 5.3%, its highest level since 2007.
Sources: European Central Bank (official statement of September 10, 2026), El País, Gestión, Folha de S.Paulo and Valor Econômico.