ECB Raises Rates for First Time Since 2023 Amid Inflation Fears

The ECB lifted its benchmark interest rate to 2.25 percent, citing upside risks to inflation and uncertainty over the Middle East conflict.

European Central Bank (ECB) President Christine Lagarde speaks to the media following the Governing Council's monthly monetary policy meeting in Frankfurt, Germany, on March 6, 2025. Jana Rodenbusch/Reuters

The European Central Bank (ECB) raised interest rates on June 11 for the first time since September 2023, moving to contain an energy-driven inflation shock triggered by the war in the Middle East even as the eurozone economy shows signs of weakening.

The ECB lifted its three key rates by 25 basis points, taking the benchmark deposit rate to 2.25 percent from 2 percent, according to a June 11 policy statement citing inflation pressures driven by an energy price shock stemming from the Iran war.