ECB Hikes Rates Again Amid Ongoing Inflation Concerns

The European Central Bank (ECB) has raised its key interest rates by 25 basis points, bringing them to 2.5 percent for the deposit facility and 2.65 percent for main refinancing operations.

This is the second rate hike since September 2023, following a previous increase in June of this year.

The ECB has revised its inflation projections upwards, expecting average inflation rates of 3 percent in 2026, 2.5 percent in 2027, and 2.1 percent in 2028.

ECB President Christine Lagarde stated that the outlook remains highly uncertain, with risks to the upside for inflation and to the downside for economic growth.