ECB Raises Interest Rates by 25 Basis Points Amid Inflation Fears

The European Central Bank (ECB) has decided to increase interest rates in the eurozone by 25 basis points, marking its second rate hike this year. This move is aimed at tackling rising inflationary pressures.

The key interest rate on the deposit facility will rise to 2.5 percent, while main refinancing operations and marginal lending facilities will see their interest rates increased to 2.65 percent and 2.9 percent respectively.

In a statement, the ECB noted that the ongoing conflict in the Middle East continues to drive up inflation pressures, with headline inflation expected to remain above target for an extended period.