The ECB raises interest rates to 2.5% amid the threat of inflation, in its second increase this year

The European Central Bank (BCE) has increased interest rates by 25 basis points to address ongoing inflationary pressures. This decision marks the second rate hike of the year, bringing the deposit facility rate (DFR) to 2.5% and the main refinancing operations (MRO) rate to 2.65%.

The move follows the central bank's strategy to stabilize the economy amidst rising prices. The adjustment reflects the governing council's ongoing efforts to manage monetary policy within the Eurozone.