Not like in Russia: The European Central Bank suddenly raised its key rate

The European Central Bank (ECB) raised the key rate by 0.25 percentage points to 2.25%. This is stated in the statement of the regulator on June 11.

"The war in the Middle East is creating inflationary pressures," the statement said.

Following the ECB, the rate, according to analysts' expectations, will be raised by the Bank of Japan to 1%. It is also noted that the ECB has raised its inflation forecast for this year and next, while simultaneously worsening the growth forecast.

Recall that this is the first increase since September 2023 and the first for the G7 countries in response to the energy shock from the war in The Persian Gulf by raising the rate. Before the conflict, the ECB consistently lowered the rate from a peak of 4%. The markets are laying at least one more increase by 0.25 percentage points by the end of the year