European Central Bank Raises Interest Rates to 2.5 Percent Amid Middle East Conflict
18 sources across 13 countries
Who reported this
- Der Spiegel
- Sueddeutsche Zeitung
- Deutsche Welle
- Frankfurter Allgemeine
- UOL
- CNN Brasil
- ANSA
- Corriere della Sera
- Infobae
- Le Monde
- Telex
- Asahi Shimbun
- Aftenposten
- Business Day
- El Pais
- Neue Zuercher Zeitung
- Financial Times
- Bloomberg
What the colours mean
- Left
- Centre-left
- Centre
- Centre-right
- Right
- A hatched block means the outlet is affiliated with, or controlled by, a state.
Political lean describes where an outlet sits within the politics of its own country. It is never a position on a single global scale.
Political lean is comparable inside one country and not across them, which is why the bar groups by country first. Publicly funded broadcasters are not marked as state-linked.
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The European Central Bank raised its key interest rates by 25 basis points on Thursday, bringing the main deposit rate to 2.5 percent. The decision, made during a meeting in Berlin, marks the second increase this year. The bank also raised the main refinancing rate to 2.65 percent and the marginal lending facility to 2.90 percent. These changes take effect on September 16.
Bank officials stated that the hike is intended to combat inflation, which reached 3.3 percent in the eurozone in August. The ECB attributed this price pressure to rising energy costs stemming from the war between the United States and Iran, as well as conflicts involving Houthi rebels in Yemen. Brent crude oil prices have surpassed 100 dollars per barrel, and natural gas prices have reached highs not seen since late 2022. President Christine Lagarde noted that inflation is expected to remain above the 2 percent target for a prolonged period.
Despite the energy shock, the ECB revised its economic growth projections upward. The bank now expects growth of 0.9 percent in 2026, 1.4 percent in 2027, and 1.5 percent in 2028. Lagarde described the eurozone economy as resilient, citing solid manufacturing and investments in artificial intelligence. However, the bank warned that the outlook remains highly uncertain, with risks of higher inflation and lower economic growth.
Market reactions were mixed. Some analysts suggest the move was necessary to avoid the delays seen in 2022, while others argue the hike may be premature given that inflation is primarily driven by external energy shocks rather than internal demand. In Brazil, the news contributed to a retreat in the Ibovespa index and a rise in the dollar.
How each side framed it
- Centre-left
- These reports emphasized the risk of a prolonged energy crisis and the potential for higher costs for consumers, such as mortgages and fuel.
- Centre
- These outlets focused on the technical details of the rate hikes and the broader global economic impact, including market reactions in Brazil.
- Centre-right
- These outlets highlighted the resilience of the economy and debated whether the ECB was acting too quickly or appropriately to signal its commitment to inflation targets.
Sources
- Centre ANSA: The Ecb raises rates by a quarter point, deposits move to 2.50%
- Centre-right Aftenposten: The European Central Bank raises the interest rate to 2.5 percent
- Centre-left Asahi Shimbun: European Central Bank raises rates by additional 0.25%, first in two meetings, wary of inflation
- Centre-left Asahi Shimbun: Three reasons why European Central Bank is more hawkish than Bank of Japan, additional rate hikes in sight within the year
- Centre Bloomberg: Lagarde Says ECB Hike Is 'Robust' Against All Three Scenarios
- Centre Bloomberg: ECB's Lagarde Says Inflation to Stay Above Target Into 2027
- Centre Bloomberg: ECB's Lagarde: Says Economy Resilient Despite Energy Shock
- Centre-right Business Day: ECB raises interest rates to beat back energy-fuelled inflation
- Centre CNN Brasil: ECB raises interest rates in the euro zone amid pressure from war in Iran
- Centre CNN Brasil: Ibovespa retreats with global tension and interest rate decisions on the radar; dollar rises
- Centre-right Corriere della Sera: The ECB raises rates again by 0.25%: what changes for mortgages, Btp and loans
- Centre-left Der Spiegel: ECB: European Central Bank increases key interest rate by 0.25 percentage points
- Centre Deutsche Welle: ECB raises interest rates to fight off inflation jump
- Centre-left El Pais: The ECB raises rates for the second time in the year given the increase in energy costs
- Centre Financial Times: European Central Bank raises interest rates with hawkish guidance
- Centre Financial Times: ECB warns of ‘upside risk’ to inflation as it raises rates to 2.5%
- Centre-right Frankfurter Allgemeine: Due to high inflation: ECB raises interest rates by a quarter percentage point
- Centre-right Infobae: The ECB raises interest rates to 2.5%, but gives no clues about next moves
- Centre-left Le Monde: The ECB raises its rates by a quarter point, to 2.5%, to respond to inflation caused by the war in the Middle East
- Centre-right Neue Zuercher Zeitung: Between inflation fear and concern about national debt, the ECB increases interest rates
- Centre-left Sueddeutsche Zeitung: Monetary policy: ECB raises key interest rate to 2.5 percent
- Centre Telex: European Central Bank raised the base interest rate to 2.5 percent
- Centre-left UOL: ECB raises interest rates to 2.5% due to inflation from war in Middle East
100% of the statements in this article were traced back to the source articles listed above.