ECB Raises Rates for First Time Since 2023 as Middle East War Drives Inflation Higher

The European Central Bank has raised interest rates for the first time since 2023, increasing the key rate by 0.25 percentage points to 2.25%. This action follows rising inflation driven by the Middle East war. Such tighter monetary conditions are exerting pressure on crypto markets, which may dampen overall growth and challenge the competitive edge of DeFi. The ECB move signals a shift toward more restrictive financial policies to combat ongoing inflationary trends.