European Central Bank Raises Rates in Bid to Quell Inflation

The European Central Bank raised interest rates on Thursday to the highest level in more than a year, as officials try to quell inflation driven by the war in the Middle East.

Policymakers at the bank, which sets rates for the 21 countries that use the euro, lifted their key rate a quarter point, to 2.5 percent. It was the second increase since the United States and Israel attacked Iran in February, starting a war that has sent global energy prices sharply higher.

This week, the price of Brent crude oil, the international benchmark, climbed above $100 a barrel, and European natural gas prices are more than double what they were before the war.

“The conflict in the Middle East continues to generate inflation pressures,” Christine Lagarde, the president of the central bank, said at a news conference in Berlin.

Article source: https://www.nytimes.com/2026/09/10/business/european-central-bank-interest-rates.html