web counter
LEXO PA REKLAMA!

SHKARKO APP

App Store
Google Play

For the first time since 2023/ The European Central Bank raises interest rates

2026-06-11 14:33:00, Kosova & Bota CNA

For the first time since 2023/ The European Central Bank raises interest rates

The European Central Bank has raised interest rates for the first time in nearly three years as rising energy prices, linked to the war between Iran and its Middle Eastern adversaries, are putting pressure on inflation in Europe.

The central bank decided to raise the key interest rate in the eurozone by 0.25 percentage points, bringing it to 2.25%. With this decision, the ECB becomes the first major central bank to tighten monetary policy since the start of the conflict on February 28.

In an official statement, the ECB stressed that the war in the Middle East is generating inflationary pressures. According to the institution, the economic outlook remains uncertain, with high risks of rising inflation and slowing economic growth.

Inflation in the 21 countries that use the euro rose to 3.2% last month, from 3% in April, mainly due to rising energy costs. The ECB aims to keep inflation close to 2%.

Europe remains heavily dependent on fossil fuel imports and is facing higher energy bills as a result of geopolitical tensions.

Analysts warn that high energy costs could jeopardize the region's economic recovery, which began after the energy crisis caused by Russia's invasion of Ukraine in 2022.

Recall that inflation in the eurozone peaked at 10.6% in October 2022, while interest rates hit a record level of 4% in September 2023, after a long cycle of increases to curb prices.

Meanwhile, the International Monetary Fund predicts that the eurozone economy will grow by 1.1% this year, down 0.2 percentage points from the forecast made in January.

The ECB argues that the rate hike aims to curb inflationary pressures and maintain price stability, while the European economy faces increased uncertainty from geopolitical developments and energy markets. /CNA





Lajmet e fundit nga