Key interest rate (Leitzins)
The rate at which banks borrow from or deposit money with the central bank, the main lever of monetary policy.
In short
As of 8 October 2026The key interest rate is the rate at which banks borrow from or deposit money with the central bank. In the euro area the ECB sets it to keep inflation at 2 %. After hikes in June and September 2026, the deposit facility rate has been 2.50 % since 16 September 2026 (as of October 2026). When the key rate rises, savings account rates usually follow.
With the key interest rate (German: Leitzins), the European Central Bank (ECB) steers monetary policy in the euro area. Its goal is inflation of 2 %. If prices rise too fast, it raises rates so loans get pricier. If the economy is weak, it cuts them.
There are three key rates. Most important for savers is the deposit facility rate, the interest banks receive on money held at the ECB. After two hikes in 2026 it has stood at 2.50 % since 16 September 2026, with the main refinancing rate at 2.65 % (as of October 2026). The ECB decides roughly every six weeks.
Example: when the ECB raises its key rate, rates on instant-access savings and new bonds usually rise soon after. For stocks that can be a headwind, because safe interest becomes more attractive. More in the topic Tagesgeld or ETF.
Related terms
Sources
- EZB: Geldpolitische Beschlüsse vom 10. September 2026
- Europäische Zentralbank: Geldpolitische Strategie
As of 8 October 2026 · Educational content, not investment or tax advice.