Forex
ECB Raises Deposit Rate to 2.5 Percent Amid Energy Price Surge
The European Central Bank (ECB) has raised its benchmark deposit rate to 2.5 percent in response to surging energy prices caused by the Middle East conflict.
The ECB cited concerns that inflation will last longer than expected, with average consumer inflation forecast at 3 percent this year.
The bank also raised its forecast for euro zone economic growth to 0.9 percent from 0.8 percent in June and increased the main refinancing rate and marginal lending facility by 0.25 percentage point each.