The European Central Bank raised its key interest rates by 25 basis points to 2.50% during its September 10, 2026 Governing Council meeting, while revising its growth forecast upward to 0.9% for 2026. HICP inflation is projected to average 3.0% this year, well above the ECB’s 2% target. High energy prices linked to supply disruptions and risk premiums tied to the Middle East conflict continue to fuel inflation. For bond markets, rising rates are putting pressure on bond prices, particularly affecting countries with high debt-to-GDP ratios such as Italy and Greece.
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