The European Central Bank is poised to raise interest rates for the first time in two and a half years, driven by escalating inflation fueled by the Iran war's energy shock. Despite concerns about slowing growth, the ECB aims to reassure markets by tackling rising consumer prices, which have surpassed its target.

The ECB is expected to raise interest rates twice in 2026, pushing the deposit rate to 2.50% as euro-area inflation nears 3% amid surging energy prices.

The European Central Bank is poised to raise interest rates for the first time in two and a half years, driven by escalating inflation fueled by the Iran war's energy shock.…

The European Central Bank is expected to hike interest rates this week for the first time in two and a half years as the Iran war energy shock stokes inflation.

The ECB is expected to raise rates by 25 basis points as higher energy prices drive inflation and raise concerns about broader price pressures.

European Central Bank looks to tamp down inflation fears