European Central Bank to raise interest rates for first time since 2011

Christine Lagarde, the president of the European Central Bank, whose governing council announced met in Amsterdam on Thursday. Photograph: Yiannis Kourtoglou/Reuters

The European Central Bank (ECB) plans to raise interest rates next month for the first time since 2011 after warning inflation would increase by more than previously estimated.

Resisting calls for a 0.5% increase next month, the ECB’s governing council said the base rate for the 19-member currency bloc would be raised by 0.25% with a further, and possibly larger increase scheduled for September.