Free daily briefing on global business news.
The ECB raised its deposit rate to 2.5% on Thursday, its second hike since the U.S.-Iran war sent energy prices surging
The European Central Bank raised its three key interest rates by 25 basis points on Thursday, citing sustained inflation pressure from the conflict in the Middle East. The deposit facility rate will rise to 2.50%, the main refinancing rate to 2.65%, and the marginal lending facility rate to 2.90%, all effective September 16, the ECB said.
"The conflict in the Middle East continues to generate inflation pressures, and inflation is set to remain well above target for an extended period," the ECB's Governing Council said in a statement.
The rate increase was the second since the U.S.-Iran war began. In June, the ECB had lifted rates for the first time since 2023, pushing the deposit rate up to 2.25%, before holding steady at its next meeting, according to CNBC. Thursday's move was fully anticipated by markets, which had assigned certainty to the 25-basis-point increase, according to CNBC, citing LSEG data.
