The European Central Bank raised key interest rates by 25 basis points as of September 10, 2026, bringing its deposit facility rate to 2.50%, while Governing Council member Olli Rehn said there is no current need to activate the Transmission Protection Instrument, or TPI (a bond-market backstop). Created on July 21, 2022, the TPI allows the ECB to buy public-sector securities on secondary markets when financing conditions deteriorate in ways not justified by economic fundamentals. Eligible countries must comply with EU fiscal rules and other governance criteria. The instrument has never been used since its creation more than four years ago, indicating that the ECB sees no sufficiently serious risk of fragmentation across eurozone bond markets. ECB staff project average headline inflation at 3.0% in 2026, 2.5% in 2027 and 2.1% in 2028. Geopolitical tensions, including the ongoing conflict in the Middle East, remain a source of uncertainty. Rehn emphasized that the ECB is not pre-committing to a specific policy path, leaving inflation, employment and energy-market developments central to meeting-by-meeting decisions.