The European Central Bank has raised interest rates for the first time in three years — Bloomberg
The European Central Bank raised its key interest rates for the first time since September 2023, responding to rising inflationary pressures caused by the war in the Middle East.
The ECB Governing Council decided to raise the deposit rate by 25 basis points to 2.25%. The main refinancing rate rose to 2.4%, and the marginal lending rate to 2.65%.
ECB President Christine Lagarde stated that inflation caused by the conflict in the Middle East is already extending beyond the energy sector and beginning to affect broader segments of the economy.
According to her, the regulator is responding not to potential risks, but to the already visible effects of rising prices. The greatest threat, Lagarde emphasized, would be to take no action and allow inflation to spiral out of control.
Prior to this, the ECB had been gradually lowering rates from a peak of 4%, but due to new economic challenges, it is forced to change its monetary policy.
Source: Bloomberg.
As a reminder, in March, inflation in Ukraine turned out to be higher than the National Bank’s forecast, and the main reason was a sharp rise in fuel and energy prices on global markets. This led to rising business costs, which were reflected in prices for transportation, services, and some products.
In March 2026, annual inflation in Poland stood at 3%. One of the key reasons for the rise in prices was the increase in energy costs amid the situation in the Middle East.
