ECB Hikes Rates Amid Ongoing Inflation Pressures in Europe

The European Central Bank (ECB) raised its key interest rate by 0.25 percentage points to 2.50% on Thursday, as expected.

The Governing Council stated that inflation pressures are still high due to the conflict in the Middle East and warned that inflation will remain above target for an extended period.

The ECB's Lagarde mentioned that inflation has been lower recently than anticipated, especially food prices, but she emphasized that the central bank was surprised by longer-lasting inflation.