The ECB raised its policy rate to 2.25% from 2.00%, its first increase in nearly three years; the move was largely priced in. Officials cited energy-driven price pressure after a prolonged closure of the Strait of Hormuz; euro-area inflation has risen above 3%. Investors widely expect at least one more ECB hike this year. The Fed is expected to hold rates next week amid political pressure from Trump for lower rates alongside rising inflation; the Bank of England is also expected to keep policy u

The ECB raised its policy rate to 2.25% from 2.00%, its first increase in nearly three years; the move was largely priced in. Officials cited energy-driven price pressure after a prolonged closure of the Strait of Hormuz; euro-area inflation has risen above 3%. Investors widely expect at least one more ECB hike this year. The Fed is expected to hold rates next week amid political pressure from Trump for lower rates alongside rising inflation; the Bank of England is also expected to keep policy unchanged.