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ECB to hike rates as Iran war fuels fresh inflation fears
The European Central Bank raised its benchmark rate to 2.5% amid soaring oil prices above $100 a barrel, stoking inflation fears and prompting expectations for continued central bank tightening.
- On Thursday, the European Central Bank raised its benchmark deposit rate by 25 basis points to 2.50%, seeking to curb energy-driven inflation triggered by the Iran war.
- Attacks linked to the U.S.-Iran conflict disrupted shipping through the Strait of Hormuz, pushing Brent crude above $100 per barrel and driving eurozone inflation above the bank's 2% target.
- ECB President Christine Lagarde stated that "inflation is set to remain well above target for an extended period," while markets price in additional rate hikes throughout next year.
- Long-Term bond yields have reached levels unseen since before the global financial crisis, raising borrowing costs for tracker mortgage customers and reflecting tightening financing conditions across the eurozone.
- Lagarde confirmed she will remain at the institution until October 31, 2027, as the bank noted the economic outlook remains "highly uncertain" with risks to both inflation and growth.
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Central banks around the world, which had been lowering interest rates until last year, have turned back toward raising them. As rising energy prices originating from the Middle East and a strong dollar driven by the Federal Reserve simultaneously pressure central banks, the entire world is rapidly leaning toward renewed tightening in unison. Following the U.S. Federal Reserve's decision on the 16th (local time) to raise its benchmark interest r…
Hong Kong Monetary Authority raises interest rates, tracking Fed move
HONG KONG: The Hong Kong Monetary Authority on Thursday raised its base interest rate charged via the overnight discount window by 25 basis points to 4.25%, tracking a hike by the U.S. Federal Reserve.
·Petaling Jaya, Malaysia
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Coverage Details
Total News Sources279
Leaning Left33Leaning Right38Center51Last UpdatedBias Distribution42% Center
Bias Distribution
- 42% of the sources are Center
42% Center
L 27%
C 42%
R 31%
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