Friedrich Heinemann

ECB rolls the dice as first major central bank to hike rates over Iran war

FRANKFURT — The European Central Bank raised interest rates on Thursday for the first time in almost three years, becoming the first major central bank to respond to the inflationary fallout of the Iran war. It was a necessary show of resolve against inflation. Or, it will come back to haunt the ECB if higher borrowing costs amplify the economic damage from a war-driven energy shock.