ECB raises interest rates
BERLIN: The European Central Bank raised interest rates on Thursday for the second time this year, seeking to quell an energy-driven rise in inflation triggered by the Iran war even as it warned that fuel prices could move higher. A month of relative calm has been shattered since end-August as the US and Iran hit military, shipping and energy assets, sending oil back above USD100 a barrel and…
The European Central Bank (ECB) increased interest rates on Thursday for the second time this year, aiming to curb inflation driven by the Iran war and fuel price hikes in the Eurozone. The bank raised its policy rate from 2.25 percent to 2.50 percent. ECB President Christine Lagarde emphasized that the decision does not commit the bank to future moves, stating that their role is to maintain price stability.
Economists anticipate this could be the ECB's final rate hike for now. The ECB adjusted its growth and inflation projections upward, reflecting a more resilient economy and persistent inflation. Inflation is expected to remain above the 2 percent target through 2028, mainly due to the resilience of the wider economy. While the ECB acknowledged that fuel prices might rise further, it remains confident in Europe's economic strength despite higher fuel costs and geopolitical tensions.
Written by urgent.news from Business Recorder's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
