The European Central Bank just did something it hasn’t done in three years. It raised interest rates.
The ECB’s monetary policy account from its June 11 Governing Council meeting, published on July 9 following the standard four-week delay, reveals the central bank lifted all three key interest rates by 25 basis points. The deposit facility rate now sits at 2.25%, the main refinancing operations rate at 2.40%, and the marginal lending facility rate at 2.65%, all effective from June 17.
Why the ECB pulled the trigger
The Governing Council’s decision reflects updated inflation projections for 2026, now pegged at 3.0%. That’s uncomfortably above the ECB’s 2% target, and the account makes clear that geopolitical tensions and energy price volatility were central to the discussion.
ECB President Christine Lagarde emphasized during the subsequent press conference that the central bank remains committed to a data-dependent approach. No pre-set trajectory, no promises about what comes next. Vice-President Boris Vujčić echoed that framing, effectively telling markets to watch the numbers, not the forward guidance.
