ECB Raises Interest Rate Amid Inflation Fears

The European Central Bank (ECB) raised its benchmark interest rate by a quarter percentage point to 2.50% in an effort to combat inflation fueled by high oil prices stemming from the Iran war.

According to ECB President Christine Lagarde, '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 decision was supported by a stronger-than-expected economy that suggests businesses can weather the higher borrowing costs.