ECB Raises Rates Again, Warns Iran War Fueling Broader Inflation

The European Central Bank has raised interest rates for the first time in nearly three years. Its deposit rate now stands at 2.25 percent, up from 2 percent.

ECB President Christine Lagarde warned that inflation triggered by the Iran war is spreading beyond just energy costs. She said the conflict is now affecting a wider range of prices across the eurozone.

Economists and investors had expected this quarter-point increase. Many are now forecasting another similar move in September.

The ECB repeated that it will not make advance commitments on future rate decisions. But Lagarde insisted the bank is well placed to handle the current uncertainty in global markets.