ECB Raises Rates for First Time Since 2023 as Iran War Fuels Inflation
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The European Central Bank (ECB) has raised its main deposit rate to 2.25%, marking the first increase since 2023. The move comes in response to higher inflation caused by the war in Iran.
Financial markets expect this to be the first of three rate rises, with two further increases anticipated by next spring. The ECB had kept rates steady for over two years before this decision.
The rate hike is designed to control inflation, which has been stoked by rising energy and commodity prices linked to the conflict in the Middle East.