Frankfurt: To check inflationary trends the European Central Bank raised interest rates by a quarter of a percentage point to 3.75 percent on Thursday and has indicated that it will not be its last in the near future.

The 13-nation central bank may hike rates again though maybe not next month, but probably in the next couple of months on the back of high oil prices, wage increase demands and volatile markets.

The European central bank has raised the key rate seven times since December 2005, when it was 2 per cent.

The move means that consumers in the Euro zone will see their mortgage and auto payments rise even as many unions agitate for across-the-board salary increases.

Inflation in the 13 euro nations is estimated at 1.8 per cent for February, according to EU data. That was unchanged from January, and below the ECB's just-under 2 per cent guideline.