Since December, the Bank of England has approved four rate rises, while in May, the Federal Reserve boosted its rate by a half-point.

The ECB, like numerous other central banks, is currently under pressure to address the issue of growing inflation.

It will join other central banks in shifting from supporting weak economies to combating rapidly escalating inflation.

The ECB, during a meeting of its 25-member monetary policy council on Thursday, called inflation a “serious issue” that has “broadened and deepened” in the 19 countries where the euro is used.

It said: “The Governing Council aims to boost the key ECB interest rates by 25 basis points at its July monetary policy meeting.

“The Governing Council plans to hike the benchmark ECB interest rates again in September.

“If the medium-term inflation outlook maintains or deteriorates, a higher increase will be warranted at the September meeting.”

Europe’s annual consumer price hikes topped 8.1 percent in May – the highest since records began in 1997, and much beyond the bank’s aim of 2 percent.

The ECB warned that inflation is likely to average 6.8 percent this year – higher than the 5.1 percent it anticipated in March.

Inflation next year is forecast to average 3.5 percent, decreasing to 2.1 percent in 2024 – still beyond the bank’s objective.

By hiking rates, a central bank can impact what people, firms, and governments have to pay to borrow money, making it an essential tool against inflation.

But it can also restrict growth, with higher rates making loans more expensive for enterprises.

The ECB lowered its growth prediction for this year from 3.7 percent to 2.8 percent, emphasising that the rate hikes would be “gradual but persistent”.

The ECB also indicated its economic stimulus package will conclude next month.