ECB raises eurozone interest rates as Iran war stokes inflation

11 June 2026 at 13:18

European Central Bank increases main deposit rate to 2.25%, with two further rises expected by next spring

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The European Central Bank has raised interest rates for the first time since 2023 in response to higher inflation caused by the war in Iran.

The ECB raised its main deposit rate from 2% to 2.25% in a move that financial markets expect to be the first of three rises by next spring.

Europe Raises Interest Rates as War Stokes Inflation

NYT - Top Stories

By: Eshe Nelson

11 June 2026 at 13:31

The European Central Bank raised interest rates for the first time since 2023. It expects inflation to run hotter than previously thought, and downgraded its forecast for economic growth.

The European Central Bank is expected to raise its forecast for inflation as the war pushes prices higher.

Trump Shrugs Off High Prices Amid Iran War and Says ‘I Love the Inflation’

NYT - Top Stories

By: Tony Romm

10 June 2026 at 22:48

As inflation outpaces workers’ wages, the Trump administration insists that its agenda is working.

Speaking at a bill signing on Wednesday, President Trump predicted that inflation would recede quickly, once the Iran conflict concludes.“ It’s going to come down like a rock.”

Inflation Keeps Prospects of a Fed Rate Cut Low

NYT - Top Stories

By: Colby Smith

10 June 2026 at 15:23

The Consumer Price Index is one of the last major data releases ahead Kevin M. Warsh’s first meeting as chair of the Federal Reserve.

The Federal Reserve building in Washington. The central bank is expected to hold rates steady for the foreseeable future.

US inflation jumped to 4.2% in May, the third consecutive increase since start of Iran war

The Guardian - World news

By: Gaya Gupta

10 June 2026 at 13:34

Before the conflict began, inflation was at 2.4%, but the closure of the strait of Hormuz has affected energy prices

US inflation jumped to an annual rate of 4.2% in May, the third consecutive monthly increase since the start of the Iran war and a three-year high, as Americans continue to face steep oil prices.

Prices have increased sharply over the past several months, rising at an annual rate of 3.3% in March before going up to 3.8% in April. In February, before the conflict began, inflation was at 2.4%.