Germany central bank policy rate holds at 2.5% in Oct 2026

Germany's central bank policy rate stood at 2.5% in October 2026, according to the Deutsche Bundesbank. Housing Market Group's calculation from the same Bundesbank figures shows a change of 0 percentage points between September 2026 and October 2026, so the rate held at its previous level.

The October 2026 figure matches the September 2026 rate of 2.5%, also reported by the Deutsche Bundesbank. Earlier in the year, the rate was lower. The Bundesbank recorded a policy rate of 2.25% in June 2026, July 2026 and August 2026. The rate therefore moved up from 2.25% in August 2026 to 2.5% in September 2026 and then stayed at that level in October 2026.

Compared with a year earlier, the rate is higher. The Deutsche Bundesbank reported a policy rate of 2.0% for October 2025. Based on Bundesbank figures, HMG calculates that the rate rose by 0.5 percentage points between October 2025 and October 2026. Over the past year, borrowing conditions linked to the policy rate have been tighter than they were in October 2025.

For the German property market, the policy rate is one of several reference points that lenders, buyers and sellers follow, because it can influence the cost of mortgage borrowing. The figures available for this article cover only the national policy rate. They do not include regional breakdowns within Germany, comparisons with other countries or Housing Market Group's own platform data on search demand and listings for the period, so this article does not draw conclusions about how housing activity responded in October 2026.

In summary, the Deutsche Bundesbank data show a policy rate of 2.5% in October 2026, unchanged from September 2026, above the 2.25% recorded from June 2026 to August 2026, and 0.5 percentage points higher than in October 2025 according to HMG's calculation from Bundesbank figures. These figures describe where the rate stood in each period and do not indicate where it may go next.