ECB Hikes Interest Rates to Tackle Oil-Fueled Inflation

The European Central Bank (ECB) has raised interest rates to combat inflation fueled by high oil prices. The decision was made at a meeting in Berlin, away from the bank's Frankfurt headquarters.

The ECB increased its benchmark rate by a quarter percentage point to 2.50%. This move aims to cool down inflation, which is being driven by the ongoing conflict in Iran and subsequent rise in oil prices.

The decision was supported by a stronger-than-expected economy, indicating that businesses can withstand higher borrowing costs.