ECB raised key rate by 0.25 point amid Middle East energy shock

The European Central Bank announced that it raised its main policy rate by 0. 25 percentage point, bringing it to 2. 25%, citing inflation pressures stemming from the Middle East conflict. The ECB’s statement also outlined revised inflation and growth forecasts through 2028. The inflation outlook was lifted while the growth projection was trimmed.

Later, CNBC reported that the rate hike was accompanied by an upward revision of inflation forecasts and a cut to growth expectations for the euro area. The network said the adjustments reflect higher energy prices caused by the Iran-U. S. conflict. The report confirmed the new rate level and the revised outlook.