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ECB Further Raises Interest Rates as Iran War Fuels Inflation

The European Central Bank increased interest rates for the first time in nearly three years, citing inflationary pressures linked to the Iran war and rising energy prices.
© Tabrez Syed/Unsplash (Yellow and blue lighted building with the sign of the Euro.)

Update (29.10.2026): News: European Central Bank holds interest rates steady at 2.5% (Rapporteur)

Update (22.10.2026): Analysis: One ECB interest rate, different inflation realities across Europe (Euronews)

Update (15.09.2026): Analysis: Fossil fuels drive EU inflation while ECB uses wrong tool (EUobserver⁠)

Update (11.09.2026): Analysis: Can ECB rate hike stop energy-driven inflation shock? (Euronews⁠)

Update (10.09.2026): News: ECB raises interest rates to 2.5% as inflation spikes (Euractiv⁠)

Update (01.09.2026): News: Eurozone inflation hits three-year high (Euractiv)

Quick Brief:

ECB raised its deposit rate by 0.25 percentage points to 2.25%

Inflation reached 3.2% in May, above the ECB’s 2% target

Rising energy costs linked to the Iran conflict drove the decision

The ECB cut its eurozone growth forecast to 0.8% and warned of continued uncertainty

Source: DW

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