The ECB raised its deposit facility rate to 2.25% at its June 2026 meeting. Staff projections now put HICP at 3.0% this year and 2.3% in 2027; the 2.0% target doesn't return until 2028.
ECB President Christine Lagarde reinforced the hawkish tilt at the June 11 policy meeting where the central bank raised rates by 25 basis points for the first time since 2023 amid energy-driven inflation. Source
