Europe’s central bank to hike rates in July

The bank made the surprise move on Thursday, saying that inflation had become a “major challenge”. Picture: Hannelore Foerster/Bloomberg via Getty

The European Central Bank (ECB) said on Thursday that it would carry out its first interest rate increase in 11 years in July, followed by another hike in September.

The surprise announcement of two quarter-point increases came after the bank’s 25-member monetary policy council met in Amsterdam, saying inflation had become a “major challenge” and that inflationary forces had “broadened and intensified”.