ECB Raises Rates as Middle East Conflict Fuels Inflation Concerns

The European Central Bank $ECB raised interest rates Thursday for the second time in its tightening cycle, citing mounting inflation pressures stemming from escalating Middle East geopolitics and surging commodity prices. ECB President Christine Lagarde emphasized the institution will do "everything possible" to control inflation amid external shocks.

The decision comes as Brent crude $BRENT exceeds $104 per barrel and global bond yields surge. The ECB also lifted growth and inflation projections for the eurozone, signaling heightened vigilance over external risks and stagflationary dynamics.

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