The European Central Bank raised its interest rates for the first time in nearly three years in a bid to cushion the impact of rising inflation that is triggered by the surge in energy prices due to the conflict in the Middle East, as the single currency economy struggles to grow.
The Governing Council, led by ECB President Christine Lagarde, hiked the benchmark rate - the deposit rate by 25 basis points to 2.25 percent. The main refinancing rate was lifted to 2.40 percent and the marginal lending rate to 2.65 percent. Such a move was widely expected as policymakers including Lagarde signaled the same since the previous policy session.
For comments and feedback contact: editorial@rttnews.com
Business News
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.