How the ECB's rate rise shows it doesn't want to be haunted by ghosts of the past (opens original article in a new tab)

The European Central Bank raised its key interest rate for the first time in three years, citing rising inflation and energy prices linked to the US-Iran war, while analysts compare the situation to past economic challenges.

• ECB raised key interest rate by 0.25 percentage points to 2.25%
• Inflation in euro area rose to 3.2% in May, above 2% target
• ECB projects inflation to average 3% in 2023 and 2.3% in 2027
• Analysts note similarities between current situation and 2011 energy shock and 2022 Russia-Ukraine war