Lagarde Hails Rate Hike as 'No Brainer' Amid Oil Price Surge

European Central Bank (ECB) President Christine Lagarde has called this week's interest rate hike 'a no brainer.' The move, which raises the deposit rate to 2.5%, is the second such increase since the conflict in Iran pushed up energy prices.

Lagarde said the decision was made unanimously and is robust against all three economic scenarios mapped out by the ECB for the region.

Investors are now betting on further rate hikes, boosted by a renewed advance in oil prices. The recent increase has sparked speculation that the ECB may continue to tighten monetary policy in response to rising inflation pressures.