ECB Raises Rates for First Time Since 2023

The European Central Bank raised its deposit rate by 25 bps to 2.25% from 2%, its first increase in almost three years. The move signals a hawkish shift as policymakers say they can no longer ignore inflation pressures tied to the Iran war. This is a market-wide macro development with implications for euro rates, bonds, and risk assets.

Analysis

The European Central Bank raised its deposit rate by 25 bps to 2.25% from 2%, its first increase in almost three years. The move signals a hawkish shift as policymakers say they can no longer ignore inflation pressures tied to the Iran war. This is a market-wide macro development with implications for euro rates, bonds, and risk assets.