Economy
European Central Bank predicts 3% inflation and nearly 1% economic growth for this year
The ECB raised its 2026 economic growth forecast to 0.9% and maintained its inflation projection at 3.0%. Concurrently, the ECB Governing Council decided to increase the three key interest rates by 25 basis points effective September 16, 2026, setting the deposit facility rate at 2.50%, the main refinancing operations rate at 2.65%, and the marginal lending facility rate at 2.90%.
Why it mattersIf you have a variable-rate mortgage or a loan indexed to the Euribor, you should expect your monthly interest payments to increase following this interest rate hike, which takes effect on September 16, 2026.
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