ECB likely to raise rates again

It is expected that the European Central Bank will raise interest rates for the first time since 2023, due to rising inflation in the Eurozone to 3.2% in May, surpassing the target set at 2%. This comes amidst increasing consumer prices driven by rising oil prices resulting from the US-Israeli conflict with Iran, which has led to higher energy and service costs. The bank will announce its decision on interest rates today at 12:15 GMT. While raising interest rates increases borrowing costs and dampens demand, it could also put pressure on the region's fragile economy.

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