ECB Raises Interest Rates by 0.25% in Response to Rising Inflation

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

The ECB's decision was made during a monetary policy meeting in Berlin, Germany, and marks the second rate hike since the outbreak of the war in Iran at the end of February this year.

The deposit rate has been raised to 2.50% per year, while the base rate (major refinancing rate) and the marginal loan rate have been increased to 2.65% and 2.90%, respectively.

According to the ECB, its policy rate hike is aimed at stabilizing inflation at a medium-term target of 2% and addressing the ongoing inflationary pressure caused by the Middle East conflict.