ECB Hikes Rates Again Amid Middle East Conflict and Energy Price Surge

The European Central Bank (ECB) raised interest rates by a quarter percentage point to 2.5 percent, its highest level since March last year.

This is the ECB's second increase this year, following a hike in June in response to the energy shock triggered by the US war on Iran.

President Christine Lagarde described the decision as a 'no-brainer' due to renewed Middle East fighting and its impact on inflation.

The conflict has pushed eurozone inflation higher, with markets expecting further hikes amid rising global energy prices.