THE GUARDIAN: European Central Bank increases main deposit rate to 2.25%, with two further rises expected by next spring
The European Central Bank has raised interest rates for the first time since 2023 in response to higher inflation caused by the war in Iran.
The ECB raised its main deposit rate from 2% to 2.25% in a move that financial markets expect to be the first of three rises by next spring.
Eurozone consumer price inflation rose to 3.2% in May 2026, from 3% in April, sparking concerns that the conflict in the Middle East will force manufacturers and retailers to push through price increases into the summer and autumn to maintain profit levels. The ECB’s inflation target is 2%.
The ECB’s president, Christine Lagarde, said the outlook for inflation and the broader economy was uncertain while the war in Iran continued to push energy costs higher. » | Philip Inman | Thursday, June 11, 2026