ECB hikes rates amid inflation fears

The European Central Bank (ECB) has increased its deposit facility rate by 0.25% to 2.25%, signaling a significant shift towards monetary tightening. This move marks the first interest rate hike in three years, driven by escalating inflation in the eurozone. The ongoing conflict in Iran is a major contributing factor to the rising inflation, pushing it to its highest point in almost three years. The ECB's decision reflects growing concerns about price stability and the need to curb inflationary pressures within the region.