ECB Hikes Interest Rates Amid Ongoing Middle East Conflict

The European Central Bank (ECB) has raised its three key interest rates by 25 basis points, bringing them to 2.65% for main refinancing operations, 2.50% for the deposit facility rate, and 2.90% for the marginal lending facility rate.

This move marks the ECB's second rate hike of 2026, following a similar increase in June and a pause in July.

The decision to raise interest rates is largely driven by ongoing conflict in the Middle East, which has pushed energy prices higher and kept inflation above the ECB's target of 2%.