ECB Hikes Rates Again Amid Eurozone Energy Crisis

The European Central Bank (ECB) has increased interest rates for the second time this year to combat rising inflation and energy costs. The benchmark rate was raised by a quarter of a percentage point to 2.5%, its highest level since March last year.

This move comes amid renewed Middle East fighting, which is expected to push eurozone inflation even higher. ECB President Christine Lagarde described the decision as a 'no-brainer', citing the need to address ongoing inflation pressures.

Lagarde also highlighted the resilience of the eurozone economy in the face of energy shocks, with the central bank upgrading its growth forecasts for this year and next. However, she declined to provide clear guidance on future interest rate hikes, stating that the outlook remains unclear.