The European Central Bank voted on Thursday to raise a key interest rate amid concerns about higher inflation. The ECB raised its deposit rate 25 basis points to 2.50 percent.
The Iran War has created an energy supply crunch, sending prices upwards. The ECB’s decision came the same day the price of Brent crude topped $105 a barrel.
ECB President Christine Lagarde said the rate hike was unanimous and a “no brainer” given the need to stabilize prices.
“With today’s decision, the Governing Council remains well positioned to navigate the uncertainty caused by the conflict,” read a statement released by the ECB.
During a press conference, Lagarde rejected French politician Jean-Luc Mélenchon’s proposal to cancel France’s debt held by the ECB. Lagarde said the idea was “not a good idea and a large waste of time.”
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