European Central Bank (ECB) President Christine Lagarde addresses the media after the ECB's Governing Council meeting, at the ECB headquarters in Frankfurt, Germany, Sept. 11, 2025. Kai Pfaffenbach | ReutersThe European Central Bank announced a quarter-point rate hike on Thursday, bringing its key interest rate to 2.25% as the Iran war continues to blow inflation off target.Markets had been pricing in a near-100% chance of the ECB raising rates by at least 25 basis points ahead of its June Governing Council meeting, according to LSEG data. The ECB's Governing Council said the decision had been made in a bid to ward off inflationary pressures generated by the U.S.-Iran war."The war in the Middle East is generating inflation pressures, and the decision to raise rates is robust across a range of scenarios mapping out how the shock might evolve and affect the medium-term outlook for the euro area," it said in a statement announcing the decision.The central bank also raised its inflation forecasts, saying it now expects headline inflation in the euro zone to average 3% in 2026 before cooling to 2.3% next year and 2% in 2028. This is breaking news. Please refresh for updates.

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

The European Central Bank is expected to make its first interest rate hike in nearly three years amid increasing inflationary pressure due to the Iran war.

The European Central Bank is widely expected to raise interest rates for the first time since 2023 as policymakers respond to rising inflation fuelled by higher energy prices…

Follow our updates as the ECB is set to raise their rates at lunchtime on Thursday

The European Central Bank’s decision on Thursday to raise interest rates by 25 basis points came as little surprise to financial markets. Most economists had already expected such…

European Central Bank (ECB) President Christine Lagarde addresses the media after the ECB's Governing Council meeting, at the ECB headquarters in Frankfurt, Germany, Sept. 11,…

The European Central Bank has lifted its deposit facility rate by 0.25% to 2.25%, marking a decisive pivot back to tightening as the Iran war pushes eurozone inflation to its…

Die Europäische Zentralbank reagiert auf die stark gestiegene Inflation im Euroraum. Der Einlagensatz steigt von 2,0 auf 2,25 Prozent.

European Central Bank increases main deposit rate to 2.25%, with two further rises expected by next spring

The European Central Bank on Thursday became the first major central bank to raise interest rates in response to the Iran war

The European Central Bank on Thursday became the first major central bank to raise interest rates in response to the Iran war

The European Central Bank (ECB) on Thursday became the first major central bank to hike interest rates in response to the Iran war as policymakers wrestle...

ECB is first big central bank to hike rates since Iran war

The war in the Middle East is generating inflation pressures

The Bank also lifted its inflation outlook for this year to 3% and lowered its growth forecast to 0.8%

Der Iran-Krieg hat in der Euro-Zone zu einem Inflationsschub geführt. Dieser ist so stark, dass die Europäische Zentralbank ihn nicht mehr ignorieren kann, zumal ein Ende des…

The European Central Bank has been moving to rein in inflation after a long pause on rate changes. The policy shift is aimed at tamping down prices while raising fresh concerns…

The European Central Bank has been moving to rein in inflation after a long pause on rate changes. The policy shift is aimed at tamping down prices while raising fresh concerns…

FRANKFURT, Germany — The European Central Bank on Thursday became the first major central bank to raise interest rates in response to the Iran war...