Amman, Sept. 10 (Petra) — The European Central Bank (ECB) raised
interest rates by a quarter of a percentage point on Thursday,
bringing its key deposit facility rate to 2.5%, as an energy shock
stemming from the war involving Iran pushes eurozone inflation higher
and prompts its second rate hike in three months.

The ECB sets monetary policy across the eurozone through three
benchmark interest rates, with the deposit facility rate serving as
its primary policy anchor.

Under the decision, the main refinancing operations rate was
increased to 2.65%, while the marginal lending facility rate was
raised to 2.90%.

In a statement reported by Euronews, the central bank noted that “the
conflict in the Middle East continues to generate inflationary
pressures, and inflation is likely to remain well above target for an
extended period.”

It added that “today’s decision places the Governing Council in a
good position to navigate the uncertainty surrounding the conflict.”

The rate increase follows August inflation data showing headline
consumer prices rose to 3.3% year-on-year, up from 2.9% in July,
marking the highest level since September 2023.

//Petra// AF