Amman, Sept. 10 (Petra) -- The European Central Bank (ECB) raised interest rates by a quarter of a percentage point on Thursday, bringing its key deposit facility rate to 2.5%, as an energy shock stemming from the war involving Iran pushes eurozone inflation higher and prompts its second rate hike in three months.

The ECB sets monetary policy across the eurozone through three benchmark interest rates, with the deposit facility rate serving as its primary policy anchor.

Under the decision, the main refinancing operations rate was increased to 2.65%, while the marginal lending facility rate was raised to 2.90%.

In a statement reported by Euronews, the central bank noted that "the conflict in the Middle East continues to generate inflationary pressures, and inflation is likely to remain well above target for an extended period." It added that "today's decision places the Governing Council in a good position to navigate the uncertainty surrounding the conflict." The rate increase follows August inflation data showing headline consumer prices rose to 3.3% year-on-year, up from 2.9% in July, marking the highest level since September 2023.

//Petra// AF