Several Belgian banks are increasing interest rates on short-term term deposits, moving ahead of anticipated hikes by the European Central Bank. This comes as inflation pressures build from higher energy costs linked to the war in Iran.

Inflation in Belgium climbed to 1.7% in March from 1.5% the prior month, according to Statbel data reported by Business AM. Fuel prices rose 11.9% year-over-year and 13.8% month-over-month. Eurozone inflation similarly increased to 2.5% from 1.9%, exceeding the ECB's target. Markets now price in two to three ECB policy rate increases this year to curb these pressures.

Beobank raised rates across several maturities this week. The six-month term deposit now offers 2% gross, up from 1.75%. Nine-month rates moved to 2.1% from 1.8%, 12-month to 2.2% from 2%, and 18-month to 2.2% from 2.05%. These rates are subject to a 30% withholding tax on returns.

Crelan adjusted its two-year term deposit to 2.1%, an increase from 1.9%.

The Belgian government's e-DEPO account, essentially a state savings book, lifted its rate to 2.3% as of April, from 2% in March. It also carries the 30% tax, with 0% on dormant or deceased accounts since early this year.

Traditional savings accounts, or spaarboekjes, show limited movement so far. Major banks remain cautious, but smaller players have acted. Keytrade Bank boosted its High Fidelity savings rate to 1.9% from 1.6%. Santander Consumer Bank raised the loyalty premium on Vision Max to 1.3% from 1.05%, yielding up to 2% total for balances between €125,000 and €300,000 (base rate 0.7%), or 1.35% otherwise.

These adjustments reflect banks positioning for higher funding costs as ECB policy tightens, though broader savings products may follow suit only after central bank action.