The European Central Bank raised interest rates Thursday for the second time this year as renewed Middle East fighting fans fears of higher inflation, and opened the door for further hikes. As widely anticipated, the central bank for the 21 eurozone nations lifted its benchmark rate a quarter percentage point to 2.5 percent, its highest level since March last year. It was the ECB’s second increase this year after policymakers lifted borrowing costs in June for the first time since 2023 in response to the energy shock triggered by the US war on Iran.
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