By Scott Kanowsky

Investing.com -- The European Central Bank will boost interest rates over its next "several meetings" before it hits a level that does not spark economic growth, according to ECB president Christine Lagarde.

Speaking at an event in Germany, Lagarde promised that the central bank will do "what we need to do" to cool down red-hot inflation, adding that this will include a series of upcoming hikes to borrowing costs.

"Our primary objective is price stability, and we have to deliver on that," Lagarde said. "If we were not delivering, it would hurt the economy far more."

She added that the ECB's "first destination" is to achieve a return to the so-called "neutral rate," which neither spurs nor hinders growth. ECB officials have claimed that that mark could be between 1% to 2% in the Eurozone.

The Frankfurt-based central bank has increased interest rates by a combined 125 basis points at its previous two meetings - its fastest pace of hikes ever. The ECB's key deposit rate, which provides the effective floor for money-market rates, now stands at 0.75%, while the refinancing rate is 1.25% and the overnight lending rate is 1.50%.

Elsewhere on Wednesday, Finnish central bank chief Olli Rehn suggested that the neutral rate could be reached before Christmas, as he urged the ECB to take "determined action" to tame surging consumer prices.

Meanwhile, Slovak central bank head Peter Kažimír also called for a 75 basis point by the ECB next month.

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