ECB Hikes Rates to Tame Energy-Driven Inflation

The European Central Bank (ECB) raised interest rates by a quarter percentage point to 2.50% in an effort to quell inflation fueled by high oil prices.

The decision, made at a meeting held in Berlin on September 10, was supported by a stronger-than-expected economy that suggests businesses can withstand higher borrowing costs.

The ECB said in a statement that the conflict in the Middle East continues to generate inflation pressures and inflation is expected to remain well above target for an extended period.