The European Central Bank (ECB) has increased its key interest rates by 0.25 percentage points, reaching the highest level in nearly three years. The move raises the deposit facility rate to 2.25%. This rate influences variable-rate mortgages, loan costs, and credit card rates offered by banks. The decision comes as a response to growing economic uncertainty stemming from the conflict in Iran. The ECB aims to control inflation and stabilize the financial system during this period of geopolitical tension. Analysts suggest this increase reflects the ECB’s commitment to maintaining price stability despite external pressures. Further rate adjustments will likely depend on the evolving situation in Iran and its impact on the global economy.