The Path of Interest Rates in Europe: Impacts on Inflation and the Economy
September 14, 2026
From 2011 to the present, the European Central Bank (ECB) has implemented 14 interest rate hikes to combat inflation. The most recent phase, from 2022 to 2023, saw the most aggressive rate increases, with ten consecutive hikes raising the deposit rate from -0.50% to 4%. This shift affects mortgage rates and household disposable income. The reasons for the increases include the energy crisis and supply chain disruptions. The ECB's goal is to reduce inflation and bring prices back to target levels.