Forex

ECB Hikes Rates Amid Ongoing Middle East Conflict

Guavy AI Editorial Team Published September 10, 2026

Instruments

EUR

The European Central Bank (ECB) has raised its key deposit rate to 2.5% in an effort to combat high inflation driven by the ongoing conflict in the Middle East and Ukraine.

This is the bank's second increase this year, following a previous hike in June, with rates rising from 2.25% on September 16th.

ECB President Christine Lagarde stated that 'the conflict in the Middle East continues to generate inflation pressures, and inflation is set to remain well above target for an extended period.'

The bank expects inflation to average 3% this year and 2.5% in 2027, up from its previous forecast of 2.3%, with energy-price inflation reaching 14.3% in August.

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