ECB raises deposit rate to 2.5% as oil-driven inflation persists
The European Central Bank raised its deposit rate by a quarter point to 2.5%, its second increase since the Iran war began, as oil prices climbed to $105 a barrel. President Christine Lagarde called the move a "no brainer" and markets now price three more hikes by October 2027. Euro zone inflation is forecast at 3% this year, with growth upgraded to 0.9%.