The European Central Bank increased its deposit facility rate from 2 percent to 2.25 percent, along with adjustments to other key rates, during its June 2026 Governing Council meeting. Eurozone headline inflation reached 3.2 percent in May 2026, driven in part by a 10.9 percent rise in energy prices linked to the Iran conflict and oil prices above $90 per barrel. Markets had assigned near-certainty to the 25 basis point move, and the ECB provided updated projections for inflation averaging 3 percent in 2026 and growth at 0.8 percent.