ECB raises rates as Middle East war fuels inflation concerns

European Central Bank (ECB) policymakers raised interest rates by 25 basis points on Thursday, citing mounting inflation pressures linked to the war in the Middle East and warning that the conflict poses growing risks to both prices and economic growth across the euro area.

The ECB Governing Council said it remains committed to ensuring inflation returns to its 2 per cent target over the medium term and described the latest increase in borrowing costs as robust under a range of scenarios...