ECB Hikes Interest Rates to Combat Oil-Fueled Inflation

The European Central Bank (ECB) has raised interest rates by a quarter percentage point to 2.50% in an effort to combat inflation fueled by high oil prices.

The decision was made at a meeting held in Berlin, away from the bank's Frankfurt headquarters, and was supported by a stronger-than-expected economy that suggests businesses can weather the higher borrowing costs.

The ECB cited the ongoing conflict in the Middle East as a major contributor to inflation pressures, which are expected to remain above target for an extended period.