ECB Raises Rates Again Amid Eurozone Inflation Pressures
The European Central Bank (ECB) has raised interest rates by 25 basis points to address inflationary pressures in the eurozone. This move, which is the second rate hike of the year, brings the deposit rate to 2.5%, the main refinancing operations rate to 2.65%, and the marginal lending facility to 2.90%. The decision was anticipated by markets, given rising inflation concerns.
The conflict in the Middle East continues to drive up prices, with inflation reaching 3.3% in August, compared to 2.9% in July. Despite a slight moderation in core inflation, the ECB has revised its forecasts for 2027 and 2028 upwards, while keeping estimates for 2026 unchanged.
The Governing Council emphasized that it will remain vigilant regarding inflation expectations, price-related risks, and the transmission of monetary policy. The future trajectory of interest rates will be conditioned by data.