ECB Hikes Rates Again Amid Euro Zone Inflation Pressures

The European Central Bank raised interest rates for the second time this year on September 10 in response to rising energy costs and inflation pressures across the euro zone.

Oil prices have surged above $100 a barrel due to attacks by the U.S. and Iran on military, shipping, and energy assets in the Middle East, increasing concerns about higher fuel prices in the euro zone.

ECB President Christine Lagarde described the rate increase as 'a no-brainer' and warned that inflation's return to the central bank's two percent target could be delayed further.

Lagarde said, 'The outlook remains highly uncertain, with risks to the upside for inflation and to the downside for economic growth.'

The ECB raised its inflation projections only slightly, but economists consider the newly released figures outdated due to the latest rise in energy prices.