ECB Raises Interest Rates by 25 Basis Points Amid Eurozone Inflation

The European Central Bank (ECB) raised its key interest rates by 25 basis points following a two-day meeting in Berlin. The decision was made to combat accelerating inflation in the eurozone, which reached 3.3% in August.

The interest rate on the deposit facility is now 2.50%, up from the previous 2.25%. The rate on the main refinancing operations rises to 2.55%, and the interest rate on the marginal lending facility reaches 2.85%

This is the second interest rate hike by the ECB this year, with the first one happening in June due to energy shock following the war in the Middle East.