ECB raises interest rates by quarter point to 2.25%
Financial Times 2026-06-11 12:16:56
Context: The European Central Bank (ECB) has made a decision to raise interest rates in response to the ongoing Middle East energy crisis, which has significant implications for the global economy. This move is notable as the ECB is the first central bank in the G7 to increase borrowing costs in this context. The decision is aimed at addressing the economic fallout from the crisis, which has led to higher energy prices and inflation.
Key Facts
- The European Central Bank has raised its interest rates by a quarter point to 2.25 percent, marking the first increase in borrowing costs in the G7 in response to the Middle East energy crisis. The decision was made by the ECB's governing council, which is responsible for setting monetary policy in the eurozone. The rate hike is a move to combat inflation, which has risen due to the energy crisis and is currently at 6.8 percent in the eurozone. The ECB has stated that it will continue to monitor the economic situation and adjust its monetary policy accordingly. In a statement, the ECB said that it is "closely monitoring the