ECB Raises Rates to Combat Inflation Driven by War

The European Central Bank (ECB) has raised interest rates by a quarter percentage point to quell inflation fueled by high oil prices from the Iran war.

The decision was made at a meeting held in Berlin, away from the ECB's Frankfurt headquarters. The benchmark rate is now 2.50%.

The move aims to cool down inflation that has been driven up by high energy costs. The stronger-than-expected economy suggests businesses can withstand higher borrowing costs.