Business
ECB raises interest rates to 2.5% as Iran war fuels inflation
September 10, 2026 at 02:56 PM
Coverage
3 reports · 1 in Arabic, 2 in English · over 5 hours
TGThe Guardian
Global bond sell-off resumes as surging oil prices stoke fears about inflation
(opens the publisher’s site)
TGThe Guardian
ECB raises interest rates to 2.5% amid warning Iran war is fuelling inflation
(opens the publisher’s site)
AJAl Jazeera Arabic
المركزي الأوروبي يرفع الفائدة للمرة الثانية منذ بدء حرب إيران
(opens the publisher’s site)The European Central Bank has raised interest rates to 2.5% as Middle East fighting pushes energy prices and inflation higher, its second increase since the Iran war began.
- The European Central Bank has raised its benchmark interest rate from 2.25% to 2.5%, its second hike since the Iran war began in February.
- The ECB lifted its 2026 eurozone growth forecast to 0.9% and said inflation will average 3% this year, warning that inflation risks have risen.
- President Christine Lagarde said headline inflation should return to the bank's target towards the end of 2027, supported by higher interest rates.
- UK 10-year gilt yields hit 5.295%, their highest since 2007, and Brent crude passed $105 a barrel after US and Iranian attacks on Gulf shipping.