ECB Hikes Interest Rates Amid Middle East Conflict-Driven Inflation

The European Central Bank (ECB) has raised interest rates by 25 basis points to combat eurozone inflation driven higher by the Middle East conflict.

In a decision announced on September 10, the ECB increased its key deposit facility rate to 2.5%, affecting the main refinancing operations rate and marginal lending facility rate as well.

The move follows August's inflation data showing headline consumer prices rose to 3.3% year-on-year, up from 2.9% in July and marking the highest level since September 2023.