ECB Raises Interest Rates Amid Inflation Concerns

The European Central Bank (ECB) has raised its three major policy interest rates by 0.25 percentage points in response to rising prices, including energy costs.

This decision was made at a monetary policy meeting in Berlin, Germany on the 10th. The ECB increased the deposit rate to 2.50 percent per annum, and also raised the base rate (major refinancing rate) and marginal loan rate to 2.65 percent and 2.90 percent respectively.

The ECB stated that 'the outlook remains highly uncertain, with upward risks to inflation and downside risks to economic growth.'

This policy rate hike is the second since the outbreak of the war in late February. Consumer price growth in the Eurozone has risen to a three-year high of 3.3% last month, exceeding the ECB's target of 2% for the sixth consecutive month.