ECB to hike rates by 0.5% in February and March

“We focus on core inflation where, unfortunately, there is no good news,” said ECB governing council member Klaas Knot. "Because it is still on the rise. Underlying inflationary pressures show no signs of abating yet."

The European Central Bank increased rates four times last year. Picture: Hannelore Foerster/Bloomberg via Getty Images.

The European Central Bank (ECB) is set to raise interest rates by 50 basis points in both February and March and will continue to raise rates in the months after, ECB governing council member Klaas Knot said in an interview.

"Expect us to raise rates by 0.5% in February and March and expect us to not be done by then and that more steps will follow in May and June," said Mr Knot.