European Central Bank makes first rate hike since 2023 to tame Iran war inflation

The European Central Bank raised its benchmark interest rate to 2.25% for the first time since 2023 to address inflation driven by the Middle East war, which pushed eurozone inflation to 3.2% in May. The ECB also revised its 2024 inflation forecast up to 3% and cut its growth projection to 0.8%, citing uncertainty from the energy crisis and conflict.