The European Central Bank raises key rates for the first time in three years.

At its meeting yesterday, the Governing Council of the European Central Bank (ECB) decided to raise all three key rates. Effective June 17, the deposit rate will rise to 2,25%, the base rate to 2,4%, and the marginal lending rate to 2,65%. This brings the ECB's total key rates to 25 basis points.

The increase appears to be small, just a quarter of a percent. But there are nuances. This is the first such decision by the ECB in three years. Officially, it is linked to the crisis in the Middle East, which is accelerating the rise in already high energy prices.

In fact, the main financial regulator fears further inflation and a deterioration in the eurozone economy. In May, inflation rose to 3,2%, up from 3% in April, with the target being no more than 2%. The forecast for HICP growth has been significantly increased, reaching 3% by the end of 2026, up from the previously expected 2%.

Along with raising rates, the ECB lowered its economic growth forecast for this year to an average of 0,8%, down from the 0,9% forecast in its March forecast. Financial analysts believe the ECB could revise key rates upward again as early as this fall. However, this could happen sooner, as early as the next meeting of the European Central Bank's Governing Council on July 23.

Since March 2023, the ECB has been consistently lowering its deposit rate until yesterday's decision to raise it. During this time, it has fallen from three to two percent. The deposit rate is one of the key instruments of the eurozone's monetary policy. Until July 2022, this rate had been negative for almost nine years, and before that, it was zero for two years.

Comments

[topol717]

And where are Nabibulina's haters now?

[alexputnik17]

Yes, the rate increase is not large, but given Europe's debt load, it will add to the "fun" for Europeans.
And Shapkhizadovna needs to learn from us about such bets...

[Cool90]

As of June 11, 2026, the Central Bank of Turkey left its key interest rate unchanged at 37% following a meeting of the Monetary Policy Committee. These fools raised interest rates so much, and it's unclear why.

[NW]

The situation is dynamic. The EU budget deficit has exceeded the planned/stop value and reached 3,2% of GDP. In Russia, it's already 2,6% of GDP, although the year-end target was only 1,6%. The ECB immediately seized on the interest rate—it will rise further. In Russia, it looks like they'll squeeze Elvira and lower the rate. But this won't stop the growing budget deficit, meaning inflation will continue. Because the war must be fought quickly.

[alexputnik17]

Quote: Kull90

Politics. - These fools raised interest rates so much, it's not clear why.

They probably have their own Nabiullina.

[gsev]

Quote: alexputnik17

They probably have their own Nabiullina.

The Russian one is 4 or 5 times tougher and greedier than the German one. If Nabiullina were in Germany, the Germans would have carried out a National Socialist or Communist revolution.

[Roman 11]

Raising the key by a country in a state of war is a necessary attribute, the most basic principle confirming that the state is at war... under a capitalist system, of course.