ECB raises interest rates to fight off inflation jump
- On Thursday, the European Central Bank raised its key deposit facility rate to 2.5%, marking its second hike since June as it responds to persistent inflationary pressures amid Middle East conflict.
- The eurozone, a net energy importer, has seen inflation exceed the ECB's 2% target since Middle East conflict threatened commodity transit through the Strait of Hormuz, causing oil prices to spike.
- August data revealed eurozone inflation reached 3.3%, with energy inflation surging to 14.3% from 10.3%; core inflation fell to 2.4% from 2.5%, while services inflation dropped to 3% from 3.3%.
- Investors remain divided over the ECB's rate path, with a Deutsche Bank survey showing no consensus about where the central bank's hiking cycle will ultimately sit.
- Economists debate whether this move marks the start of a protracted tightening cycle, while the Federal Reserve, Bank of England, and Bank of Japan prepare for their own rate decisions in coming weeks.
197 Articles
197 Articles
Loans will be more expensive - the European Central Bank has raised interest rates for the second time this year.
ledauphine.com
The European Central Bank (ECB) has raised its main policy rate as expected by analysts on Thursday by 0.25 percentage point, placing it at its highest level since March 2025, in order to counter the renewed inflation caused by the Middle East war. It has also slightly improved its growth forecast to 0.9% this year, compared with 0.8% earlier
The European Central Bank (ECB) on Thursday, as expected, raised interest rates by another quarter of a percentage point, taking the deposit rate to 2.50 percent, the bank said in a press release. It warned that the conflict in the Middle East continues to create inflationary pressures and predicted that inflation would remain above its 2 percent target for an extended period.
The Governing Council of the European Central Bank (ECB) decided to raise the three key interest rates by 25 basis points from September 16.
The Governing Council of the European Central Bank (ECB) has raised the central euro interest rates in line with market expectations. It has raised them by 0.25 percentage points. The deposit rate, which is the reference for euro monetary policy, will now be at 2.50 percent. This is the second interest rate increase this year, the first of which was decided by the ECB in June.
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