ECB Hikes Rates Again Amid Iran War-Driven Inflation

The European Central Bank has raised interest rates for the second time since the Iran war began in February, responding to concerns that inflation will remain above 2%. The deposit rate was increased by a quarter-point to 2.5% on Thursday, as predicted by almost all economists surveyed by Bloomberg.

The ECB's decision is seen as a move to combat rising prices, which are being driven by the ongoing conflict in Iran. Despite some uncertainty surrounding the global economic outlook, the bank has signaled that it will continue to monitor inflation and adjust policy accordingly.

However, the ECB has also emphasized that it will not pre-commit to further rate hikes, instead opting to make decisions on a meeting-by-meeting basis as data arrives.