ECB Raises Interest Rates to Combat Inflation Fuelled by Oil Prices

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

The decision was made at a meeting held in Berlin, away from the ECB's Frankfurt headquarters, and comes as the conflict in the Middle East continues to drive up energy costs.

The bank noted that eurozone inflation stood at 3.3% in August, above its target of 2%, with high energy prices being a significant contributor to this figure.