By Annika Steiner MRICS, Partner and Managing Director at Wüest Partner
The interest rate pause of the European Central Bank (ECB) does not come as a surprise. After the ECB raised the deposit rate by 25 basis points in June, inflationary pressures have recently eased somewhat. Inflation in the euro area fell to 2.8% in June 2026 and even to 2.3% in Germany. Against this background, the central bank does not currently see any acute need for action.
The decline in inflation has given the ECB some leeway. But at the same time, the recent escalation in the Middle East ensures that uncertainty about the further development of energy prices remains high. The decisive factor for the further interest rate path will be whether the renewed energy price increase of the last few days will be permanently reflected in higher inflation expectations or rising wage demands. For the real estate industry, the interest rate pause initially means continuity. The financing environment remains predictable for the time being. However, developments on the capital markets should be monitored closely. The yields on long-term government bonds have recently shown once again how sensitively the capital markets continue to react to geopolitical events.
Conclusion: The ECB is sticking to its data-dependent course and leaving key interest rates unchanged for the time being. If inflationary pressure intensifies again, a further interest rate hike after the summer break is likely to come back into focus.
