ECB to Raise Rates for First Time Since Sep 2023 as Iran‑related Energy Shock Fuels Inflation

The European Central Bank announced plans to increase its key interest rate. This will be the first rate hike since September 2023. The decision comes amid rising inflation across the eurozone. Inflation pressures are being amplified by higher energy costs. Energy disruptions stem from the ongoing conflict involving Iran. The war has constrained fuel supplies and pushed prices upward. Policymakers say tighter monetary policy is needed to curb price growth. The move signals a shift toward more aggressive rate policy in Europe.