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

Base rate to rise by 0.25% and quantitative easing to stop in July after ECB warns about inflation

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.