FRANKFURT, July 23, 2026 — The European Central Bank has kept its benchmark deposit rate unchanged at 2.25% but indicated that additional increases remain possible if higher energy costs intensify inflation.
The ECB raised rates in June for the first time in nearly three years. Policymakers decided to pause this month while assessing economic growth, wage trends and the impact of the Middle East conflict on oil and gas prices.
The ECB’s principal objective is to maintain inflation near 2%. Markets expect the central bank could resume increasing rates as early as September if the energy shock persists.
Rates for weekly and overnight central-bank borrowing remain at 2.40% and 2.65%, respectively.
Why it matters: ECB decisions affect mortgages, business financing, government borrowing and the value of the euro throughout the 21-country currency bloc.
