The ECB has now raised rates for the 19-country euro area by a full 2 percentage points in just three months, underlining its determination to stamp out the record inflation.
After reaching a record 9.1% in August, inflation may rise into double digits in coming months, economists say.
All eyes are on debt-saddled Italy, whose bond yields have already shot up against benchmark German bunds.
Other central banks around the world, including the US Federal Reserve, have moved quicker than the ECB. But they face the threat of spurring a recession as they make borrowing more expensive.
This is exactly what the Reserve Bank of India wanted to avoid and acted just in time raising rates last month but the larger issue is how long the tightening cycle will last.
Global share markets have been on an uptrend since the start of the year, helped by solid corporate earnings and positive economic data across major countries.