President of the European Central Bank, Christine Lagarde revealed on Monday the central bank intends to raise the interest rates by 25 basis points at the July policy meeting.

Speaking before the Committee on Economic and Monetary Affairs of the European Parliament, the ECB’s President explained that the Russian military operation has contributed to growing prices consequently leading to global inflation.

“Euro area activity is being dampened by high energy costs, intensified supply disruptions, and greater uncertainty,” said Lagarde, stressing that ECB rates are likely to increase again in September, adding that the rate will be decided upon economic developments ahead.