ECB says it will raise interest rates for the first time in a decade next month

Euro interest rates set to rise for first timne since 2012

(Picture: PA Archive)

The European Central Bank (ECB) is to end a decade of zero or negative interest rates next month when it will raise the cost of borrowing by 0.25 per cent.

The Governing Council of the Eurozone’s central bank said there would be a further hike in September, the scale of which will be determined by the medium term inflation outlook.