ECB Raises Interest Rates by 25 Basis Points as Inflation Forecast Climbs to 3.0% for 2026

According to Kitco News, the European Central Bank raised interest rates by 25 basis points on June 11, lifting the deposit facility rate, main refinancing operations rate, and marginal lending facility rate to 2.25%, 2.40%, and 2.65%, respectively. The ECB also raised its headline inflation forecast for 2026 to 3.0%, citing higher energy prices driven by the ongoing Middle East conflict.

Gold prices showed minimal reaction to the rate decision. Spot gold was last trading at $4,064.20 per ounce, down 0.15% on the day, holding near 11-month lows. In euro terms, the metal traded at €3,530.36 per ounce, roughly flat.