ECB Raises Rates Amid Energy Price Surge

The European Central Bank (ECB) has raised its interest rates for the second time this year, aiming to combat inflation driven primarily by rising energy prices. The policy rate was elevated from 2.25% to 2.50%, with ECB President Christine Lagarde highlighting the uncertain outlook for inflation and potential risks to economic growth.

The decision comes amidst turmoil in the energy market, with oil prices surpassing $100 a barrel following recent military and energy sector conflicts in the Middle East. Lagarde emphasized that the ECB's focus remains on stabilizing prices amidst supply and demand shocks, but analysts expect more rate hikes due to sustained energy cost surges.