ECB Hikes Deposit Rate Amid Inflation Fears

The European Central Bank (ECB) has raised its key deposit rate by 25 basis points, from 2.25% to 2.50%, in response to rising inflationary pressures.

The decision comes after data showed that inflation in the euro zone hit 3.3% in August, with energy inflation surging to 14.3%.

The ECB officials had said since the US-Iran war broke out that they would take a meeting-by-meeting approach to monetary policy.