ECB Raises Rates Amid Middle East Conflict

The European Central Bank (ECB) has decided to hike interest rates by 25 basis points to tackle inflation, which is being fueled by the ongoing conflict in the Middle East. The ECB aims to stabilize inflation at 2% in the medium term, but expects it to remain above target until the first half of 2027. Economic growth projections have been revised down due to the war’s impact on energy markets and consumer confidence. What does it mean for you? If you're in the Eurozone, you might see higher borrowing costs, but also efforts to keep inflation in check. Keep an eye on your budget as energy prices could stay high for a while.