ECB HIKES RATES AGAIN ON MIDEAST INFLATION

The European Central Bank raised its deposit facility rate by 25 basis points to 2.50% on September 10, effective September 16, as the Middle East conflict keeps inflation pressures elevated. The main refinancing rate climbed to 2.65% and the marginal lending facility to 2.90%. ECB staff now project 2026 headline inflation at 3.0%, a full percentage point above the bank's 2% target. The euro ($FXE) is being repriced for a central bank still tightening, not cutting.