ECB Raises Interest Rates to 2.5% to Curb Inflation

In September 2026, the European Central Bank raised its key interest rates by a quarter of a percentage point to 2.5%. The move is a response to a jump in inflation driven by higher energy prices.

ECB President Christine Lagarde commented on the decision at a press conference. The rate increase contributed to a selloff in European government bonds, with yields reaching multi-year highs as traders anticipated further rate hikes.