ECB Hikes Interest Rates Amid Ongoing Inflation Concerns

The European Central Bank (ECB) raised interest rates by 25 basis points to address inflationary pressures, placing the deposit rate at 2.5%. This is the second upward adjustment of the official reference so far this year.

Christine Lagarde, the president of the ECB, maintained a restrictive tone in her press conference following the meeting, leaving room for further rate hikes if necessary to stabilize inflation. However, she emphasized that the decision was made unanimously.

The market's reaction is mixed, with some analysts predicting another rate hike by December and others believing interest rates have already reached their peak this year. The ECB has revised its growth projections for 2026 and 2027 upwards, but also forecasts continued inflationary pressures.