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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.

As Iran war drags on, spiking energy prices send inflation to 3-year high

PBS NewsHour - The Latest

By: Geoff Bennett · Jackson Hudgins

10 June 2026 at 23:50

Spiking energy prices sent inflation to a three-year high in May, up 4.2% annually. The Labor Department said the cost of energy was responsible for over 60% of the increase. Core inflation, which strips out volatile food and energy prices, was up a more modest 2.9%. Geoff Bennett discussed more with Roben Farzad of Full Disclosure.