ECB Hikes Rates Amid Energy Price Risks

The European Central Bank (ECB) raised interest rates for the third time this year, but warned that renewed energy-price shocks could push inflation up and drag eurozone growth down.

The ECB lifted its three key rates by a quarter of a percentage point, taking its deposit facility rate to 2.50%, signaling it's not declaring victory over inflation yet.

The bank said price pressures are still too high versus its 2% goal, and energy is the wild card: depending on how big and long-lasting an energy hit is, it can spill from utility bills into broader prices and wages.