Central banks raise interest rates amid French debt concerns

In September 2026, several major central banks implemented interest rate increases. The European Central Bank (ECB) raised its three key rates by 0.25 percentage points, including the deposit rate which rose to 2.50%. Similarly, the US Federal Reserve increased its rates by 0.25 points to 4%, and the Bank of Japan raised its policy rate to approximately 1.25%.

In France, the rising interest rate environment is compounded by growing market skepticism regarding national debt. Since the beginning of 2026, the rates at which international investors lend to France have increased more rapidly than those of comparable major nations. While the French government has proposed a 54 billion euro recovery effort for the 2027 budget, critics argue the strategy focuses on new taxes—such as on highways and airports—rather than structural reductions in public spending.