ECB raises key interest rates by 25 bp

The ECB Governing Council raised its three key interest rates by 25 basis points. ECB staff projected headline inflation at 3.0% in 2026, 2.5% in 2027 and 2.1% in 2028. The baseline growth projection was 0.9% for 2026, 1.4% for 2027 and 1.5% for 2028. Market context: ECB rate decisions can move euro exchange rates, European bond yields and regional equities.