ECB warns of inflation risks as energy prices surge

The European Central Bank has warned that rising energy prices linked to the war in Iran will push inflation higher across the eurozone and weaken economic growth, as it kept interest rates unchanged. The bank held its main deposit rate at 2 per cent following its latest policy meeting, with officials citing increased uncertainty and risks tied to the conflict in the Middle East. ECB president Christine Lagarde said the war had altered the economic outlook.