The European Central Bank has raised interest rates for the first time in nearly three years, citing growing inflation risks linked to the ongoing Iran conflict and rising energy costs. The ECB increased its benchmark deposit rate to 2.25%, even as economic growth across the eurozone remains weak. ECB President Christine Lagarde said the Middle East conflict is generating inflationary pressures.

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…

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