FX.co ★ ECB Lifts Key Rate to 2.65% in September, Extending Tightening Cycle Across Euro Zone

The European Central Bank has raised its key interest rate to 2.65% in September 2026, continuing its tightening cycle across the euro zone. The move marks an increase from the previous level of 2.40%, which had been in place since July 2026.

The latest adjustment underscores the ECB’s ongoing effort to steer monetary conditions in response to evolving economic dynamics in the currency bloc. With the new rate of 2.65% now in effect, markets and policymakers will be closely watching how borrowing costs feed through to growth, inflation and financial conditions across member states.

According to the most recent data update on 10 September 2026, the September decision confirms a further step away from the July benchmark, signaling that the central bank remains prepared to adjust policy as needed in the months ahead.