ECB Raises Rate to 2.5% as Middle East War Complicates Inflation Outlook - Tekedia

The European Central Bank raised its key deposit rate by 25 basis points to 2.5% on Thursday, delivering the widely expected increase as surging energy prices and geopolitical tensions complicate the outlook for inflation and economic growth across the euro zone. The decision lifted the deposit rate from 2.25% and marked the latest step in the ECB’s tightening cycle, which began in response to an inflation shock intensified by the war in the Middle East. Markets had fully priced in the increase ahead of the meeting, with LSEG data showing a 100% probability of a 25-basis-point hike. Join Tekedia Capital Syndicate and co-invest in great global startups. The more consequential question for investors is what comes next.