BlockBeats News, June 11th, the European Central Bank raised interest rates for the first time in nearly three years, becoming the pioneer among central banks in developed countries to respond to the inflation caused by the Iran war. The bank today raised the main interest rate from 2% to 2.25%, a move that was widely anticipated by the market but also highlighted the challenges faced by major economies due to the prolonged closure of the Hormuz Strait leading to rising energy prices. Investors generally believe that the European Central Bank will hike rates at least one more time this year.

This decision also makes the European Central Bank the first major central bank to tighten monetary policy in response to the rise in energy prices, which has pushed the eurozone inflation rate above 3%. The Federal Reserve is expected to keep interest rates unchanged next week under the leadership of Chair Powell, who is facing a dilemma between Trump's demand for low rates and the mounting inflation pressure; the Bank of England is also expected to keep rates unchanged next week. (FXStreet)