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ECB raises rates for first time since 2023 as Iran war drives inflation higher
Jun 12, 2026
< 1 min read
by Micah Abiodun
for CryptoPolitan
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The ECB raised its deposit rate by 25 basis points to 2.25% on Thursday, its first hike since September 2023, after the Middle East war pushed eurozone inflation well above the 2% target. This major central bank tightening increases monetary policy risk and higher yields are likely to reduce liquidity and pressure crypto and DeFi markets, weighing on adoption and speculative token performance.
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On Thursday, the European Central Bank increased its deposit rate by 25 basis points to 2.25% in its first rate hike since September 2023. The escalation of the war in the Middle East sent inflation within the eurozone significantly above the bank’s target of 2%. The ECB has become the first major central bank to...
