On 29 October 2026 the European Central Bank's Governing Council left its key interest rates unchanged. It was the first meeting since the September hike we covered in “The ECB raises rates to 2.50%”, and came just two days after the BNB released the September mortgage-rate data we analysed in our previous piece. This article updates both.
| ECB rate | Level after 29 Oct 2026 |
|---|---|
| Deposit facility | 2.50% |
| Main refinancing operations | 2.65% |
| Marginal lending facility | 2.90% |
The ECB raised its deposit rate twice in 2026 — from 2.00% to 2.25% (decided 11 June, effective 17 June) and to 2.50% (decided 10 September, effective 16 September). October's decision is a pause, not a reversal: the bank gave no signal of cuts.
According to the figures cited around the decision, euro-area inflation accelerated to 3.8% in September (from 3.2% in August) — almost double the 2% target. Energy prices are the driver.
In its statement the ECB says energy prices have continued to rise, posing upside risks to inflation and downside risks to growth. At the same time, underlying inflation has so far remained broadly stable and wages show no material response. The bank also notes something that matters to borrowers: financing conditions have tightened since the previous meeting.
In other words, the ECB judges the two hikes sufficient for now and is waiting to see whether the energy shock spreads to other prices. The next decision is due on 17 December 2026 (meeting on 16–17 December).
On the same day the ECB announced that its President, Christine Lagarde, will step down on 7 February 2027, before the end of her term. That has no direct effect on Bulgarian mortgages, but it means decisions in the first half of 2027 will be taken during a leadership transition.
The picture here is calmer than the ECB headlines suggest:
Why are Bulgarian mortgages not reacting yet? Local banks are flush with deposits and compete hard for housing loans, and most contracts are linked to banks' internal reference rates, which move more slowly than Euribor. That cushion is not unlimited — the ECB itself notes that financing conditions in the euro area are tightening.
If you are about to buy with a mortgage. The pause is not a signal that rates will fall. The sensible approach is to plan your repayment with a margin — for example, check whether your budget can cope with a rate 1 percentage point above the current offer. Compare offers on APR and the ESIS, not just the advertised rate — see our guide on how to compare two mortgage offers. You can also work out the repayment in our mortgage calculator.
If you already have a variable-rate loan. Check which reference index your rate is linked to and how often it is reset. If your bank offers a fixed period on terms close to today's, now is the time to consider it. When switching banks makes sense is covered in our guide to refinancing a mortgage.
If you are selling. Buyers with an approved loan are still getting terms around the year's average, but banks are becoming more cautious. A realistic price and a ready document pack shorten the time between loan approval and the notary.
The ECB has stopped at 2.50% after two hikes but promised no cuts — euro-area inflation is 3.8% and the risks point upward. Bulgarian mortgages are holding at around 2.4% for now, but market rates are already higher. The next key date is 17 December.
If you are thinking of buying with a mortgage or want a second opinion on the terms of your current loan — call us or come into the office. We will go through the actual offers with you.
ECB, NSI and BNB data, verified as of 30 October 2026. Interest rates and market indicators are indicative and subject to change.
