ECB raises rates by 0.25 points amid inflation linked to Middle East war

The European Central Bank (ECB) has increased its key interest rates by 0.25 percentage points, a move widely anticipated by markets. This decision comes as the bank seeks to curb inflation, which has been exacerbated by the ongoing conflict in the Middle East. The rate hike is the first since July 2025, signaling a shift in monetary policy.

The deposit facility rate, a key benchmark, has been raised to 2.25%. The rates for refinancing operations and marginal lending now stand at 2.40% and 2.65%, respectively. These adjustments aim to cool down an overheating economy and bring inflation back towards the ECB's target.

In its statement, the ECB emphasized that the decision provides a strong foundation for navigating the uncertainties stemming from the war. The Governing Council's commitment to price stability remains paramount as it monitors economic developments and adjusts its policy stance accordingly. Further details on the ECB's outlook and the implications of this rate hike are expected.

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Thanks to the decision taken today, the Governing Council remains in a good position to deal with the uncertainty generated by the war.