ECB Hikes Rates to Tame Eurozone Inflation Amid Energy Price Shock

The European Central Bank (ECB) raised its policy rate by 0.25 percentage points to combat rising eurozone inflation and energy price shock.

The ECB increased the deposit facility rate from 2.25% to 2.5%, as well as the main refinancing operations rate and marginal lending facility rate, all of which are now at 2.65% and 2.90%, respectively.

This decision is aimed at taming inflation driven by oil prices, with the eurozone's consumer price inflation reaching 3.3% last month, exceeding the ECB's 2% target for the sixth straight month.