Eurozone hit by first interest rate rise since 2023 as ECB battles inflation from Middle East war – business live
Summary
The European Central Bank (ECB) has raised interest rates by 0.25 percentage points for the first time since September 2023. This decision comes because inflation in the eurozone increased to 3.2% last month, partly due to higher energy prices caused by the war in the Middle East.Key Facts
- The ECB increased its deposit facility rate from 2.0% to 2.25%.
- The main refinancing rate rose from 2.15% to 2.4%.
- The marginal lending rate went up from 2.4% to 2.65%.
- Inflation in the eurozone reached 3.2% last month.
- The war in the Middle East has caused energy prices to rise, pushing inflation higher.
- The ECB lowered its economic growth forecasts for 2026 and 2027 due to the conflict’s effects.
- Inflation forecasts have been increased for 2026 and 2027 because of expected higher energy price impacts.
- The ECB is the first major central bank among the G7 countries to raise interest rates in response to the Middle East war.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.