The European Central Bank decided to raise interest rates to 2.5%. This decision represents another step in the bank's restrictive monetary policy to combat inflation in the euro area.
The president of the monetary institution did not want to anticipate the next steps in interest rate policy. The reason presented was the high level of uncertainty currently experienced, especially due to the war in the Middle East.
The conflict in the Middle East has been generating instability in global financial and economic markets, which influences the European Central Bank's decisions regarding its future interest rate trajectory.
